As Canadians have seen home ownership become out of reach over the last 5 years, merely renting a home has now become quite the hurdle for many families and primarily right here in the Greater Toronto Area where we have seen a significant increase. According to new data from Urbanation, the average rent for condominiums in the GTA rose to $2,803 in Q2, a new record high for the region. At 12.6%, the annual rate of rent growth was slower than what was seen in Q1 (13.6%) and Q4 2022 (16.9%), but marks the seventh straight quarter of double-digit rent inflation! Over the last two years, condo rents in the GTA have jumped by 31.7%!
The average asking price in the rental market has jumped over 9% in the last 12 months, forcing many Ontario residents to share accommodations with friends and family or put out ads to acquire a roommate to share the costs.
Apartments:
Bachelor $2,082 | 1 Bedroom: $2,532 | 2 Bedroom $3,264 | 3 Bedroom $4,482
Townhouses:
Bachelor: $2,083 | 1 Bedroom $2,361 | 2 Bedroom $3,075 | 3 Bedroom $3,561
In July of this year the Toronto Star wrote an article on a family in Aurora who were asked to leave their home because the landlord was moving there family in. Forced to move out of their rental home, the Eliesen family have been struggling for months to find a new place to live in York Region. Their offer of two years' rent up front, or "nearly $100,000 cash," according to David Eliesen, has been declined multiple times. The family's rent had been a manageable $1900 dollars per month, but due to current market demands, a similar three- to four-bedroom home in Aurora is going to cost the young Eliesen family roughly $4,000 per month, maybe more.
This story is one of many sadly of those impacted by the rising cost of living and the staggering growth of rental prices.
Looking for a rental? Here are some useful tips:
1. Credit Score: With the market being so competitive, it is imperative that the primary applicant has a high credit score. This could be a make it or break it scenario when you are in a multiple offer scenario.
2. Representation: With The Landlord Tenant Board changing laws on a yearly basis, having an informed Broker will hep you and your family make a sound decision on where to put your application. You can rely on your Broker to read through your agreement and do their due diligence on your behalf to ensure you are not agreeing to anything that is illegal.
3. Minimalistic Living: If you are looking to rent a home for the entire family, you may want to consider downsizing your furniture and other large household items so you can rent a smaller abode, leaving you room for other costly monthly living expenses.
4. Utilities: It is always a good idea to ask the landlord ahead of your application, what the average cost of the utilities are. This can add upwards of $1000 extra per month in some cases.
5. Communication: Prior to signing the dotted line, make sure you are clear on the landlords intentions for the future. Are they planning on selling anytime soon? Moving in family? Is there an option to rent longer than 12 months? You are not required to pay several months up front, nor is a security deposit mandatory. Know your rights and the rights of your landlords.
We partner with agents within our Brokerage who specialize in leases and who would be happy to assist you further in your search.
Resources:
Coldwell Banker: Website: https://www.cbtherealestatecentre.com/
York Housing New Town Development: https://www.york.ca/newsroom/campaigns-projects/future-community-housing-town-whitchurch-stouffville
York Housing Contact: [email protected]
