The average cost of rent in Toronto is expected to grow by approximately seven per cent by December 2020, according to a new forecast.

In November 2018, the average rental rate for all property types in Toronto was $2,385, according to Bullpen Consulting and Rentals.ca, the authors of the forecast.

That rate increased to $2,591 in November 2019, representing an increase of 8.6 per cent annually.

According to Rentals.ca, condo rental rate growth was slower than anticipated in 2019, rising by just four per cent, while rental apartment growth was more significant, at nine per cent. Rent growth for single-family homes was more significant as well, at 11 per cent.

Average rent in 2020 is expected to surpass $2,800 at some point in the year, though Rentals.ca and Bullpen anticipate that rent by December 2020 will be an average of $2,770 per month, representing a seven per cent annual increase.

The level of construction completions on condo buildings is expected to rise rapidly in 2020 as well, according to the forecast.

“However, elevated population growth, and a recovering resale housing market will continue to price-out first-time buyers and should offset some of that increased condo rental supply,” the forecast says.