According to a recent nationwide analysis of online classifieds, the average rent in Canada for all homes rose by more than 10 percent year-on-year in July.
The latest National Rent Report, published by Rentals.ca and Bullpen Research and Consulting, found the average rent for all types of properties — including single-family homes, townhouses, rental apartments, condominium apartments and basement apartments — posted to the website in July was $1,934. .
That is an increase of 10.4 percent compared to the same month in 2021.
The report found that the average rent in July 2022 was just $20 lower than the pre-pandemic peak of $1,954 in September 2019.
Month-over-month average rents rose 2.6 percent in July compared to June, making it the second-highest monthly increase in three years, Bullpen Research and Consulting president Ben Myers said in a press release.
“Rentals were driven by rent growth (or increases) of 20 percent and above in several major municipalities in Canada, and double-digit growth in some of the most affordable rental markets, such as Red Deer and Saskatoon,” Myers said.
The median rent in July was $1,799, up from $1,750 in June and up nine percent from $1,649 in July 2021.
The report points out that employees returning to the office are a factor behind rising rents.
Higher mortgage rates and concerns about future housing price declines hit potential home buyers with a “double whammy,” the press release said. Rising interest rates also prevent potential home sellers from listing their properties. These factors can lead to increased demand in the rental market.
“Immigration remains high and the unemployment rate across the country remains at an all-time low, so despite fears of a recession, demand in the rental market remains strong,” the report said.
VANCOUVER AND BC TOP LISTS
An analysis of 35 Canadian cities found that in July this year, Vancouver topped the list with the highest average monthly rent for a one- and two-bedroom home at $2,500 and $3,630 respectively, for 14 year-over-year increases. .4 percent and 19.4 percent.
Compared to June, average rents for a one-bedroom home in Vancouver increased 3.6 percent and 4.8 percent for a two-bedroom home.
The average rent in Toronto for July rose 21.6 percent year-on-year to $2,257 for a one-bedroom home and 25 percent to $3259 for a two-bedroom home. Toronto ranks fourth on the list of the highest rents.
Month-over-month, average rent in Toronto increased four percent for a one-bedroom home and 7.8 percent for a two-bedroom home.
Montreal ranked 24th on the list, with an average rent increase in July of 8.9 percent to $1,543 for a one-bedroom home compared to the previous year and an increase of 5.7 percent to $1,958 for a home. with two bedrooms.
British Columbia had the highest average rent for all property types in July at $2,590, up 19 percent year on year.
Ontario came in second with an average rent increase of 15.2 percent to $2,332 year-over-year, while Nova Scotia came in third after average rent rose significantly by 25 percent year-over-year to $2,222 in July.
Manitoba was the only province to see average rents decline in July 2022 compared to July 2021, although it represented only a slight drop from $3 to $1,377.
Single-family homes are the most expensive units listed on Rentals.ca, the report says, up 14.1 percent in July to $3,043 compared to the previous year. The median rent for single-family homes has risen $391 since January.
Average monthly rent for townhouses rose 17.3 percent annually to $2,465 and 14.4 percent to $2,306 for condominium apartments.
Apartments saw a year-over-year increase of 7.7 percent to $1,743 in July.