August 15, 2022
Market Trends
RYPM
If you’re on the hunt for a rental in one of Canada’s
biggest cities, continue to brace yourself for lofty prices and tight
competition.
According to a new National Rent
Report by Rentals.ca and Bullpen Research &
Consulting, the average rent across all property types in Canada was $1,934
in July, up 10.4% since last year. This is similar to what we saw in June
when national average rents rose 9.5% year over year (YoY).
The July average was also up 2.6% since June. July’s average is only $20 below
the pre-pandemic peak — $1,954 in September 2019.
The median rental rate was also up in July, sitting at
$1,799 per month, compared to $1,750 the month prior and $1,649 the year prior.
“The 2.6% monthly increase in average rents in Canada is the
second highest monthly jump in three years, topped only by the 3.8% rise in May
2022,” says Ben Myers, President of Bullpen Research & Consulting. “Rents
were boosted by rent growth of 20% and higher in several major municipalities
in Canada, and double-digit growth in a number of the most affordable rental
markets, such as Red Deer and Saskatoon.”
Of all Canadian provinces, BC had the highest average rents
across all property types — $2,590 in July, up 19% from last year and 0.6% from
last month. Ontario trailed behind with an average of $2,332 in July, up 15.2%
since last year and 3.1% since last month. Average rents were also up YoY in
all other provinces except Manitoba, where rents were essentially
unchanged.
On a month-over-month (MoM) basis, Manitoba and Nova Scotia
joined BC and Ontario in seeing increases, while Saskatchewan and Nova Scotia
saw decreases.
On a local level, Victoria saw the most notable rental rate
increase across all property types at 27% YoY. Other notable YoY increases
included Hamilton (26%), Kitchener (25%), Burnaby, Toronto and London (24%),
Mississauga (19%), Calgary (18%), Vancouver (16%), and Red Deer (13%). On the
flip side, average rents in Winnipeg fell by 1%.
Challenging Conditions for GTA Renters
Out of 35 cities, Toronto had the fourth highest rental
rates in all of Canada. A one-bedroom in the city was $2,257 in July, up 21.6%
YoY and 4% MoM. Meanwhile, a two-bedroom in the city was $3,259 in July, up 25%
YoY and 7.8% MoM.
Additionally, Etobicoke had the fourth-highest rental rate
in all of Canada, North York has the ninth-highest, and Mississauga had the
tenth-highest.
When you break down rents based on property types,
single-family homes were the priciest in terms of rent, with an average monthly
rate of $3,043 in July. That price is up 14.1% since last year and $391 since
January. Townhouses had an average of $2,465 per month, up by 17.3% YoY, and
rental apartments had an average of $1,743, up by 7.7% YoY. Rental apartments
make up the majority of listings on Rental.ca.
The report notes that, in general, condos are renting for a significant
premium over apartments. Additionally, it attributes rental rates in the
single-family home segment to investors.
“With higher home prices, and higher interest rates helping
to increase demand in the rental market, some investors are seeing this as an
opportunity to rent out more single-family properties,” the report explains.
“Despite worries of large corporations buying many single-family houses to
rent, less than 6% of all rental properties listed on Rentals.ca are
single-family dwellings, up from 2021, but virtually unchanged from 2020. But
record-high rents for single-family homes in 2022 will attract more investors
if house prices in the resale market continue to decline.”
Recent Posts
How to complete the L5 application?
March 27, 2024
What is the L5 application in Toronto?
March 27, 2024
Toronto's New 'Rain Tax': What Property Owners Need to Know
March 27, 2024
How do you serve the L5 application in Ontario?
March 27, 2024
How do I know if I need to fill out the L5 application?
March 27, 2024
What happens if I fill out the L5 application incorrectly?
March 27, 2024
How do I fill out the L5 application?
March 27, 2024
How do I fill out the L5 application correctly?
March 27, 2024
What is the L5 application?
March 27, 2024
How to complete the L4 application?
March 27, 2024