Widow looking for answers after Quebec man dies in Texas Ironman competition
The widow of a Quebec man who died competing in an Ironman competition is looking for answers.
The average cost to rent an apartment in Canada increased by 11.1% from August 2021 to August 2022, according to the latest national rent report from rentals.ca.
If you live in an apartment, then you’ve more than likely felt the effects of the dramatically increased rental rates in Canada.
Today, I’ll share 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.
In August 2022, Canadian renters paid an average of $1,959 per month, according to rentals.ca. This is up from the recent post-pandemic low of $1,676 in April 2021. An increase of that magnitude is surprising, to say the least.
According to this same rentals.ca’s national rent report, the three cities that have seen the highest annual increase in one-bedroom rental prices are:
Toronto comes in at fourth place, with a 17.1% average rental increase, compared to August 2021.
According to StatCan’s latest national income report, the median post-tax income for Canadians is $66,800. At this rate, low to middle-income renters are definitely feeling the strain of the market.
So, why are rental rates in Canada skyrocketing? Let’s take a quick look at some of the key contributing factors.
With recent annual inflation rates (expected to be 7.0% as of August 2022), Canadians’ wallets are starting to feel the strain.
It’s no secret that inflation has caused a lot of grief for Canadians. Almost everything has been growing more expensive. Groceries, clothing, building materials, automobiles, gasoline, and more have become less affordable for the average Canadian. Unfortunately, increased rental prices seem to be par for the course.
The cost of rent generally correlates with the value of the property being rented. More expensive buildings generally come with a higher monthly rent.
According to Wowa’s latest housing market report, both commercial and residential properties have increased in value compared to last year. Despite the recent correction that the market has seen in September, property values are still high. This could potentially mean that apartment owners are passing their higher mortgage interest expenses onto their tenants.
The COVID-19 pandemic caused a lot of confusion in the market. Many Canadians lost their jobs, were forced to downsize, or are currently unsure of what the future holds. As a result, there have been fewer real estate transactions (people purchasing houses).
Based on Wowa’s report, the total number of real estate transactions in August 2022 was 38,310, compared to August 2021, which saw 50,876 real estate transactions.
Based on this data, it’s likely that many Canadians are postponing buying a home. Instead, they’re choosing to rent. This could mean an increased demand for apartment units and a reduced supply of apartments. Any time apartment demand increases and supply decreases, the cost of rent is going to go up.
Now that you have a better idea of why rent is increasing, let’s take a quick look at some of the ways that Canadians are responding and what you can do to make paying rent easier
1. Personal budgeting & cost-cutting
Creating a budget is crucial if you want to stay on top of your personal finances. With the cost of everything increasing, your finances are likely to be a bit tighter than usual. Unexpected expenses could easily affect your ability to pay rent on time.
I recommend sitting down and creating a simple budget sheet, detailing your monthly income, expenses, utility bills, and rent payment. This will ensure that you don’t overspend and that you have enough to pay rent.
2. Picking up a side gig
Picking up a side gig is a great way to increase your income by turning your free time into paid time. As an independent contractor, you’ll be able to work as little (or as much) as you want, pick your own hours, and earn upwards of $20 per hour or more.
3. Signing longer rental contracts
Most apartments offer a price break to tenants who agree to sign long-term leases. Signing an 18- to 24-month lease may allow you to save 5% or more on your monthly rent when compared to a 12-month lease.
4. Living with roommates
Living with roommates isn’t always easy, but it certainly makes things more affordable. Renting a larger 2 or 3-bedroom apartment and splitting the rent across with multiple roommates is one way to reduce your monthly expenses and stay afloat, despite the increase in rental rates.
According to Bloomberg, the Canadian housing market is predicted to fall by 25% by the end of 2023. This could result in lower (or at least more steady) rental rates.
At this point, it’s difficult to say for sure.
For now, I encourage you to do your best to stay on top of your personal finances and spend your money wisely.
Christopher Liew is a CFA Charterholder and former financial advisor. He writes personal finance tips for thousands of daily Canadian readers on his Wealth Awesome website.
Do you have a question, tip or story idea about personal finance? Please email us at dotcom@bellmedia.ca.
The widow of a Quebec man who died competing in an Ironman competition is looking for answers.
Facing pushback from physicians and businesspeople over the coming increase to the capital gains inclusion rate, Prime Minister Justin Trudeau and his deputy Chrystia Freeland are standing by their plan to target Canada's highest earners.
Former NDP leader Tom Mulcair says that what's happening now in a trash-littered federal park in Quebec is a perfect metaphor for how the Trudeau government runs things.
The U.S. Senate has passed US$95 billion in war aid to Ukraine, Israel and Taiwan, sending the legislation to President Joe Biden after months of delays and contentious debate over how involved the United States should be in foreign wars.
People living near a wildfire burning about 15 kilometres southwest of Peace River are being told to evacuate their homes.
The world is seeing a near breakdown of international law amid flagrant rule-breaking in Gaza and Ukraine, multiplying armed conflicts, the rise of authoritarianism and huge rights violations in Sudan, Ethiopia and Myanmar, Amnesty International warned Wednesday as it published its annual report.
Police are investigating after a transport truck collided with a train in Sarnia.
As some family doctors are retiring and others are moving away from family medicine, there are fewer medical students to take their place.
Individuals being barred from entering Ontario’s legislature while wearing a keffiyeh say the garment is part of their cultural identity— and the only ones making it political are the politicians banning it.
The giant stone statues guarding the Lions Gate Bridge have been dressed in custom Vancouver Canucks jerseys as the NHL playoffs get underway.
A local Oilers fan is hoping to see his team cut through the postseason, so he can cut his hair.
A family from Laval, Que. is looking for answers... and their father's body. He died on vacation in Cuba and authorities sent someone else's body back to Canada.
A former educational assistant is calling attention to the rising violence in Alberta's classrooms.
The federal government says its plan to increase taxes on capital gains is aimed at wealthy Canadians to achieve “tax fairness.”
At 6'8" and 350 pounds, there is nothing typical about UBC offensive lineman Giovanni Manu, who was born in Tonga and went to high school in Pitt Meadows.
Kevin the cat has been reunited with his family after enduring a harrowing three-day ordeal while lost at Toronto Pearson International Airport earlier this week.
Molly Knight, a Grade 4 student in Nova Scotia, noticed her school library did not have many books on female athletes, so she started her own book drive in hopes of changing that.
Almost 7,000 bars of pure gold were stolen from Pearson International Airport exactly one year ago during an elaborate heist, but so far only a tiny fraction of that stolen loot has been found.