Average rent for GTA condos soars to over $2,000 a month

Rental rates in Ontario soared just before the province implemented its expanded rent control rules in April, according to a report.

Condominium research firm Urbanation Inc. said the 5.1-percent jump in rents from the first quarter to the second quarter was the largest quarterly increase on record and sent the average rent in the Greater Toronto Area condominium market to $2,073 per month — based on average rent of $2.89 per square foot and an average condo size of 717 square feet, which was down from 741 square feet a year ago.

“It’s reasonable to suggest that rents for units that came up for lease were pushed higher than otherwise would have occurred due to the new rent control rules, in an effort by landlords to offset lost future rent growth,” said Shaun Hildebrand, senior vice-president at Urbanation.

Ontario on April 20 expanded rent control across the province to include buildings constructed after 1991 so they are now subject to rent increases tied to inflation that are capped at 2.5 per cent. Landlords are allowed to reset rents to market rates once a tenant moves out.

Another consequence of the change in policy — predicted by many in the real estate community — could be less tenant turnover as renters take advantage of increases that can only be tied to inflation.