Rents for downtown condo units that are about 300 square feet in size — also known as micro-condo units — have recorded a 27 percent decline since January 2019.
A new rental market report from TorontoRentals.com and Bullpen Research looked at the average price per square foot for downtown rental condos across unit sizes ranging from 300 square feet to 1,200 square feet.
Unsurprisingly, during the pandemic, when buyers and renters alike have been searching for more space, the smaller unit sizes posted the largest rent price declines. For the 300-square-foot micro-condo units, the average price per square foot was $5.94 in January 2019. By February 2021, the report found the average price had dropped to $4.31, a 27 percent decline.
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This was the largest rent price decline measured in the 10 unit sizes looked at for the report.
By some definitions, units that are about 400 square feet in size also qualify as micro-condos. The TorontoRentals.com and Bullpen Consulting report found that these units recorded a 23.5 percent rent price decline from January 2019 to February 2021.
The average decline in rent prices across all unit sizes was 17.5 percent for that period, meaning the 400- and 300-square-foot units recorded price drops that were well above the average.
When it came to monthly rent prices, the Greater Toronto Area recorded its 15th consecutive decline in February. The average monthly rent for all property types across the GTA was $1,986, down 16.3 percent over the previous year.
In the Toronto rental market — including both rental condos and apartments — the average price was down nearly 20 percent to $2,000.
“The spring rental market is now upon us, and that will be a test for the resiliency of the market, as this period typically experiences the strongest demand of the year,” said Bullpen Consulting President Ben Myers.
“Are tenants willing to return downtown in anticipation of a re-opening of offices, or wait until it becomes a reality?”