While Toronto has long stood as an epicenter for housing activity and price growth, a recent study found that the city’s rental rates are still affordable—at least when compared to other top global cities.
In its latest report
, online service RentCafe cited data from Z/Yen and Point2Homes noting that Toronto ranks only 26th in terms of the most expensive rental rates among the world’s leading urban conglomerations. This is despite Toronto ranking 13th among the top 30 financial centres globally.
“I know for locals, housing in Toronto is expensive,” RentCafe spokesperson Nadia Balint said, as quoted by CBC News. “But compared to other major financial powerhouses around the world, Toronto's rental market seems quite reasonable.”
The RentCafe survey found that the average monthly rent for a one-bedroom apartment (less than 1,000 square feet) in Toronto currently stands at $1,600. This is relatively close to the Toronto Real Estate Board’s estimate of $1,776 for a one-bedroom condo.
To compare, New York City’s average monthly price for the same property type is at $4,900. Meanwhile, the Vancouver average is at $1,868 per month.
However, “given the rising prices and Toronto becoming a relocation destination for many looking for jobs in the financial sector, this growing demand could mean rising prices,” Balint noted.
The RentCafe official added that improving the rate of building new housing is key to preventing further affordability pressures from piling upon Toronto’s already stressed tenants.
“If they’re not building enough, then the prices will keep climbing.”
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