GTA Rental Market 2024: Key Trends and Challenges for Renters
The Canadian rental market has been a wild ride lately, especially in major cities like Toronto. If you're a renter—or thinking about renting—you’ve probably felt the pinch of rising prices or struggled to find a spot that checks all the boxes. As someone who helps people navigate the rental market in the GTA daily, I see these challenges up close. Let’s break down what’s happening, what might change, and what you can do about it.
Rent Prices: Why So High?
First off, rent prices are no joke right now. According to a RentCafe report, Toronto rents went up by around 6-9% in 2023, with the average one-bedroom unit hovering around $2,700. For comparison, Vancouver’s rents are slightly lower but still pricey at $2,400. The main culprits?
High demand.
Limited housing supply.
Inflation.
The good news is, experts from Desjardins predict that rent hikes might slow down soon. With more housing developments popping up and economic growth cooling off, the market could start to stabilize. But don’t expect an overnight fix—rents will still feel steep in the short term, especially in big cities like Toronto.
The Suburbs Are Calling
Recently, I’ve had a lot of my clients asking me to help them find a new rental property outside of Toronto’s downtown core. This trend really started happening during the pandemic. Remote work pushed people to suburban areas or smaller cities where rents are more manageable.
What Renters Want
According to RentCafe, amenities like in-unit laundry, gyms, outdoor spaces, and even pet-friendly policies are high on the wishlist. If you're working remotely, not having a dedicated office space might be a dealbreaker.
Landlords and condo buildings who offer these extras are more successful at getting their property rented.
But be prepared to pay a bit more for these conveniences—but they could make your day-to-day life a lot easier.
Immigration’s Role in Demand
Immigration is also playing a big role in Canada’s rental market. With Canada welcoming 500,000 new immigrants annually by 2025, there’s no doubt rental demand will stay high. Many newcomers end up in bigger cities like Toronto, Montreal, and Vancouver, which fuels competition for units.
Interestingly, some newcomers are now exploring rentals in smaller cities and suburbs, where the cost of living is more manageable. This trend might help ease some of the pressure in larger cities over time.
Looking Ahead
So, what’s next? Desjardins forecasts that rent inflation will slow, thanks to:
Increased housing supply.
Slower economic and population growth.
But even with these shifts, affordability will remain a challenge. If you’re planning to rent, start your search early, be flexible, and know what trade-offs you’re willing to make.
