Condo in Toronto, apartment rental prices drop again amid ongoing coronavirus pandemic – Toronto


Ben Myers says there is no precedent for what is happening.“In my 20 years of covering the market, I’ve never seen rent drops like this,” Myers said, reflecting on the continued decline in apartment and condo rental rates in Toronto. since the declaration of the coronavirus pandemic in March.

Myers, president of Bullpen Research and Consulting, follows the GTA real estate industry. In his new report analyzing the rental market in the Toronto area, he highlighted how the market has plunged.

“The average rental rate in the Greater Toronto Area is now down 13% per year, but when you factor in room types, one-bedroom suites are down 11% and two-bedroom apartments are down. rooms are down 9%, ”he wrote.

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The average rent was around $ 2,131 a month in September, Myers reported.

The drop in prices did not surprise those looking for accommodation. Rental websites are full of new listings looking for tenants, a far cry from just a few months ago when landlords could name a price and usually get it.

“It’s definitely hitting an historic slowdown, something we’ve never seen before,” said Richard Joy, executive director of the Urban Land Institute.

“For tenants, it’s a buyer’s market, and rental affordability has been a serious issue for some time.”

Where do potential tenants find the biggest discounts?

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“The downtown condominium market: Church-Yonge Corridor, Bay Street Corridor, Entertainment District,” said Myers, who told Global News monthly rents are typically down between $ 300 and $ 500. $.

He said the reduction represented savings of 15-20% compared to the same period in 2019.

Myers attributed the glut of units in the rental market to various factors, including the “work from home phenomenon”. Many tenants have returned with their parents because they may no longer need to be in the office every day. In addition, foreign students and tourists do not book short and medium term rentals as they normally would.

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He also wrote that many landlords, “especially owners of recently completed high-end apartments,” offer significant discounts for renting out their properties, including up to two months’ rent free.

How long will the rental market persist like this?

“Most people expect a healthy return when the pandemic is truly over,” Joy said.

“It’s hard to imagine it would go any lower, but anything is possible.”

Myers wrote that “weakness is likely to continue” in the market.

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“Rents will eventually reach a level that will start to draw people out of their homes and out of roommate situations,” he said.

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But asked for his opinion on pricing in the coming months, Myers offered the prediction.

“We think it will continue to decline,” he said.

© 2020 Global News, a division of Corus Entertainment Inc.


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