We know how expensive it can be to rent in Toronto — as of last month, the median rent (for all bedroom counts and property types) in the city was $2,595. This is about 33 per cent higher than the national average, according to recent market trends. For tenants looking for a cheaper place to live, basement units have long been the ideal compromise — sure, the light isn’t great, but it’s worth it for a discount on rent. But new research shows that basement apartments can now be just as expensive as above-ground units in Toronto, depending on the community you rent in.
The report by Wahi, which looked at data from June 2023 to June 2024, found that single-family homeowners who rent out their basements in the GTA could be earning up to $2,600 a month, or $31,200 a year, in extra rental income.
To no surprise, the four communities with the highest median asking rents for basement units were all located in Toronto. Old Toronto (the area that formed the original City of Toronto) topped the list of basement rental incomes at $2,600 a month (this is about $31,200 annually in potential rental income). Keep in mind that Old Toronto also has some of the highest home prices (for example, at the time of the report, the median sold price of a home was $1, 610,000).
In second place was East York ($2,450 a month, with a median yearly rental yield of about $29,400 a year for the owners), followed by the York community ($2,350 a month, or about $28,200 a year), and Etobicoke ($2,300 a month or about $27,600 a year).
Oakville was in fifth place, with a median monthly basement rental income of $2,200 or about $26,400 a year) followed by North York ($2,150 a month or $25,800 a year).
Scarbrough, Mississauga, Aurora and Vaughan completed the top 10 list, each with $2,000 in monthly basement rental income (or about $24,000 a year).
With so much rental income potential to be had in these basement units, there appears to be growing interest in properties with separate entrances.
“Whether as a mortgage helper or a way to earn some extra cash, Wahi has seen strong interest for houses with rental potential,” Wahi CEO Benjy Katchen said in a statement. “Separate entrance was the most-searched term on Wahi in 2023, many buyers are on the hunt for houses they can partly rent out.”
Wahi found that, in terms of supply, Toronto had the most basement listings (4,037), followed by York (1,563), Peel (1,384), Durham (959) and Halton (371). Toronto also had the highest median monthly rent ($2,300 — an average across all basement rentals within Toronto), followed by Halton ($2,050), Peel ($2,000), York Region ($1,980) and Durham ($1,900).
For their analysis, Wahi analyzed median asking rents for one- and two-bedroom home listings (both detached and semi-detached) throughout the GTA. Most of the rentals reviewed were for basements, but in some cases, the listing may be for first- or second-floor rentals.
