According to TREB, the average rent for a one-bedroom condo in Mississauga climbed to $2,000 in the last quarter of 2018, while in 2015, it was $1,511. That is the rent has risen $489/month or 32.3% in just 48 months.
Only in 2018, the rent has risen 11.5% from the 1st quester of the year to the 4th quarter. The average rent of a one-bedroom condo unit in the first three months of 2018 was $1794/month and in the last three month was $2000.
The average rent of a two-bedroom has also increased from $2,169/month in the first quarter of 2018 to $2,385/month in the last quester.
Similarly, the average rent of a three-bedroom condo apartments was $2,423 at the beginning of the year and $2,650 per month at the end.
“The Greater Toronto Area has seen significant growth in its economy throughout 2018. It has become a primary destination for companies in various industries who are attracting younger talent who have a desire to live in the region,” said Garry Bhaura; the president of TREB, in his quarterly analysis.
“This desirability has contributed to the continuation of historically-low vacancy rates, strong competition between renters for available units and, as a result, very strong growth in average rents,” he added.
According to TREB, a supply shortage is driving up prices. The government of Ontario lifted rent control rules from new units unoccupied prior to Nov. 15, 2018 to encourage development of new buildings.
Please note, the rent controls were left in place for existing tenants already under a lease.
TREB supports the government’s decision, believing it will eventually lead to the desired outcome of increased supply and more affordable rental rates in the long-term.
“It is conceivable that rent controls could prompt some investors to consider selling their units and investing the proceeds in another asset class. This scenario could obviously compound an already problematic rental supply issue in the GTA,” said Jason Mercer, TREB’s director of market analysis.