As interest rates continue to rise this year, many are shifting their real estate goals from buying to renting. Although, according to the Toronto and Greater Toronto Area (GTA) Rent Report from TorontoRentals.com, average rent prices in the GTA are up 19% annually. On the other hand, average home sale prices have been coming down month-over-month in numerous cities in the GTA, leaving many wondering if now is the right time to buy or continue renting. We compared the most recent available data of June rental prices and average July home prices to determine which cities are worth buying or renting in. The average monthly mortgage payments were calculated assuming a 20% down payment, 30-year amortization, and a 5-year fixed interest rate of 4.49%
The Average Rent for All Property Types in the GTA is Up by 19%
The June 2022 rental report found that the average rent for all property types in the GTA increased by 19% year-over-year, for an average of $2,403 per month compared to $2,018 per month in June 2021 for all property types. June 2022 saw the second highest monthly rental price growth rate in over three and a half years of 3.1%, following May’s 5.7% month-over-month increase.
The cost per rental unit depends on a variety of factors including the type of property, location, and the number of bedrooms. For example, basement apartments are the most affordable rental property type at an average of $1,815, whereas renters of single-family homes can expect to pay an average of $3,389. The average rental price for all property types has grown in June 2022 compared to June 2021.
Sale Prices in Toronto and the GTA are Dipping Month-Over-Month
Toronto Regional Real Estate Board’s (TRREB) July report found that condo apartments are the most affordable property type for prospective home buyers in Toronto and the GTA. Condo apartments in Peel Region and York Region are the most affordable, with average prices of $616,876 and $687,843 respectively. In Toronto, the average price was $744,092.
The demand for condo apartments has grown, and they are currently the second most in-demand property type in Toronto and the GTA, second only to detached homes. It seems more people are choosing to buy condo apartments compared to renting them, but how do the monthly mortgage payments compare to monthly average rental prices?
Average Rent of Condo Apartments in Toronto and the GTA Compared to Average Monthly Mortgage Payments
Mississauga and Oshawa stand out as the cities where buying is more affordable than renting. For Brampton and Toronto, the price difference is relatively small, and as rent prices are projected to continue increasing, purchasing in these cities may lead to long-term savings. On the other hand, in Oakville, the price to own is substantially higher than to rent which may be driven by the demand to buy condo apartments in the city.
With any home purchase, there are other costs associated including saving for a down payment and legal fees, but if you’re on the fence as to whether you should buy or rent, speak to a real estate agent to understand your options and download our free Buyer’s Guide to learn more.
Patti Cosgarea is an accomplished public relations professional with a passion for digital communications and all things real estate. She dedicates her creative prowess to crafting compelling content that empowers and guides North Americans on their real estate journeys.
With a keen eye for detail and a knack for storytelling, Patti ensures that Zoocasa's message resonates with its audience, whether it’s first-time home buyers or experienced investors,
making complex real estate concepts accessible to all.
Her love for real estate extends to her personal life. When she’s not analyzing Canadian and U.S. real estate data, you can find her wielding a hammer and paintbrush, renovating her townhouse in Kitchener. These DIY projects showcase her creativity and passion for design, learning as she goes to offer her insights to others working on transforming their house into a home.
Patti’s real estate insights and articles have been published in BNN Bloomberg, CTV News, the Globe and Mail, and her interviews and quotes about current market conditions can be found on the National Post, Business in Vancouver, Global News and more.