Average rent up more than 10% in July from previous year, report says
Average rent in Canada for all properties rose more than 10 per cent year-over-year in July, according to a recent nationwide analysis of online listings.
The latest National Rent Report, released by Rentals.ca and Bullpen Research and Consulting, found average rent for all property types — including single-family homes, townhouses, rental apartments, condominium apartments and basement apartments — posted to the website was $1,934 in July.
This is an increase of 10.4 per cent compared to the same month in 2021.
The report found average rent in July 2022 was only $20 below the pre-pandemic peak of $1,954 in September 2019.
Month-over-month, average rent rose 2.6 per cent in July compared to June, making it the second-highest monthly jump in three years, Bullpen Research and Consulting president Ben Myers said in a press release.
"Rents were boosted by rent growth (or increases) of 20 per cent 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," Myers said.
The median rental rate in July stood at $1,799, up from $1,750 in June and an increase of nine per cent from $1,649 in July 2021.
The report points to workers returning to the office as one factor behind rising rent prices.
Higher mortgage rates and worries over future price declines in the housing market are hitting potential homebuyers with a "double whammy," the press release says. Rising interest rates are also preventing potential home sellers from listing their properties. These factors could be leading to greater demand in the rental market.
"Immigration remains elevated, and the unemployment rate nationwide remains near historic lows, so despite some recession fears, the rental market demand remains strong," the report says.
VANCOUVER AND B.C. TOP LISTS
An analysis of 35 Canadian cities found Vancouver topped the list with the highest average monthly rent for a one- and two-bedroom home in July of this year at $2,500 and $3,630, respectively, for year-over-year increases of 14.4 per cent and 19.4 per cent.
Compared to June, the average rent for a one-bedroom home in Vancouver rose 3.6 per cent and 4.8 per cent for a two-bedroom home.
Average rent in Toronto for July rose 21.6 per cent year-over-year to $2,257 for a one-bedroom home and 25 per cent to $3,259 for a two-bedroom home. Toronto ranked fourth on the list for highest rent prices.
Month-over-month, average rent in Toronto rose four per cent for a one-bedroom home and 7.8 per cent for a two-bedroom home.
Montreal ranked 24th on the list, with average rent in July up 8.9 per cent to $1,543 for a one-bedroom home compared to the previous year and up 5.7 per cent to $1,958 for a two-bedroom home.
British Columbia had the highest average rent for all property types in July at $2,590, up 19 per cent year-over-year.
Ontario came in second with average rent up 15.2 per cent to $2,332 year-over-year, while Nova Scotia ranked third after average rent rose significantly in July by 25 per cent year-over-year to $2,222.
Manitoba was the only province to see its average rent decrease in July 2022 compared to July 2021, although it only represented a slight drop of $3 to $1,377.
Single-family homes are the most expensive units listed on Rentals.ca, the report says, up 14.1 per cent in July to $3,043 compared to the previous year. Average rent for single-family homes has increased $391 since January.
The average monthly rent for townhouses rose 17.3 per cent annually to $2,465 and 14.4 per cent to $2,306 for condominium apartments.
Apartments saw a year-over-year increase of 7.7 per cent to $1,743 in July.
If you live in an apartment, then you've more than likely felt the effects of the dramatically increased rental rates in Canada. Personal finance contributor Christopher Liew explores some of the key factors contributing to the increased rental prices in Canada, along with some of the things that Canadians are doing to cope with the current market.
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