As a sign of the times, Canadian rents have experienced the largest monthly increase since May 2019.
According to the Rentals.ca and Bullpen Research & Consulting latest National Rent Report, average rent for all Canadian property types listed on Rentals.ca increased 3.7% from April to May. This marks the largest increase since May 2019, as the market moves back to pre-COVID-19 highs of 2019 and rents continue to rise.
Average rent for all Canadian rentals rose 10.5% year over year in May.
“Uncertainty in the ownership housing market, and the delay in delivering new supply because of supply-chain delays and labour stoppages should continue to put upward pressure on rents into the fall of this year in the face of increased demand,” reads the report.
The notable rent hike comes following months of relatively flat rents in most parts of the country (not in Toronto, however, where rents have been climbing in recent months).
“After relatively flat rents on average in Canada during the first four months of the year, rents rose sharply in May, as interest rate hikes dissuaded would-be buyers from leaving the rental market,” says Ben Meyers, President of Bullpen Research & Consulting. “The typical seasonal increase in demand in the spring, coupled with renewed interest in more expensive downtown properties in Vancouver and Toronto, also contributed to the rise in rents nationally.”
Not surprisingly, the rent hikes were the greatest in Canada’s largest cities. In Toronto -- which finished second on the list of 35 cities -- the average monthly rent for all property types in May hit $2,474, an annual increase of 20%. Furthermore, average rental prices for apartments and condos increased 19% year over year to $2,418 per month in May, following a decline of 11% annually in May 2021 and 6% annually in May 2020.
Toronto average rents for the first five months of the year broken down by property type are: single-family, $3,542; townhouse, $3,275; condo rental, $2,563; apartment, $2,176 and basement apartment, $1,933. The average rent for a two-bedroom in Toronto is now over $3,000. Year over year, average monthly rent in May for a one-bedroom in Toronto was up 15.7% ($2,133) and up 21.5% for a two-bedroom ($3,002). Month over month, average rent in Toronto was up 3.3% for a one-bedroom and up 5.4% for a two-bedroom.
Meanwhile, Oakville came in fourth on the list for average monthly rent in May for a one-bedroom home at $2,011 and sixth for average monthly rent for a two-bedroom at $2,445. Year over year, average monthly rent in May for a one-bedroom in Oakville was up 8.2% and up 8.9% for a two-bedroom. Month over month, average rent in Oakville was even for a one-bedroom and up 4.8% for a two-bedroom.
Burlington finished fifth on the list for average monthly rent in May for a one-bedroom home at $1,978 and ninth for average monthly rent for a two-bedroom at $2,331. Year over year, average monthly rent in May for a one-bedroom in Burlington was up 11% and up 13.3% for a two-bedroom. Month over month, average rent in Burlington was down 1.9% for a one-bedroom and up 3.1% for a two-bedroom.
Etobicoke came in sixth on the list for average monthly rent in May for a one-bedroom home at $1,972 and fifth for average monthly rent for a two-bedroom at $2,586. Year over year, average monthly rent in May for a one-bedroom in Etobicoke was up 14% and up 17.4% for a two-bedroom. Month over month, average rent in Etobicoke was up 4% for a one-bedroom and up 5.7% for a two-bedroom.
Richmond Hill finished eighth on the list for average monthly rent in May for a one-bedroom home at $1,928 and 10th for average monthly rent for a two-bedroom at $2,296. Year over year, average monthly rent in May for a one-bedroom in Richmond Hill was up 20.3% and up 7.2% for a two-bedroom. Month over month, average rent in Richmond Hill was up 2.9% for a one-bedroom and up 5.3% for a two-bedroom.
Elsewhere in suburbia, Mississauga came in 10th on the list for average monthly rent in May for a one-bedroom home at $1,855 and 11th for average monthly rent for a two-bedroom at $2,282. Year over year, average monthly rent in May for a one-bedroom in Mississauga was up 5.6% and up 10.7% for a two-bedroom. Month over month, average rent in Mississauga was up 2.1% for a one-bedroom and up 3.2% for a two-bedroom.
Closer to the core, North York finished 12th on the list for average monthly rent in May for a one-bedroom home at $1,781 and eighth for average monthly rent for a two-bedroom at $2,367. Year over year, average monthly rent in May for a one-bedroom in North York was up 7.9% and up 14.5% for a two-bedroom. Month over month, average rent in North York was up 3.2% for a one-bedroom and up 4.8% for a two-bedroom.
Vaughan came in 13th on the list for average monthly rent in May for a one-bedroom home at $1,720 and 14th for average monthly rent for a two-bedroom at $2,226. Year over year, average monthly rent in May for a one-bedroom in Vaughan was up 6% and up 4.2% for a two-bedroom.
Rentals.ca
To the east, Oshawa finished 18th on the list for average monthly rent in May for a one-bedroom home at $1,663 and 23rd for average monthly rent for a two-bedroom at $1,903. Year over year, average monthly rent in May for a one-bedroom in Oshawa was up 8.1% and up 17.5% for a two-bedroom.
Brampton came in 21st on the list for average monthly rent in May for a one-bedroom home at $1,591 and 22nd for average monthly rent for a two-bedroom at $1,941. Year over year, average monthly rent in May for a one-bedroom in Brampton was down 2.1% and up 6.9% for a two-bedroom.
In terms of rent prices, Vancouver takes the cake. The average rent for condominium rentals and apartments in Vancouver in May was $2,850 per month, an increase of 23% annually. Vancouver has averaged the highest rent for all property types so far this year at $2,909 on a list of 20 Canadian cities and areas.
The next seven highest are in the Greater Toronto Area: Richmond Hill at $2,645; Toronto at $2,365; Etobicoke at $2,213; Mississauga at $2,180; North York at $2,047; York at $2,044 and Brampton at $2,032. The next five cities are all in Ontario: Hamilton at $1,933; Ottawa at $1,902; Kitchener at $1,896; Scarborough at $1,864 and London at $1,841. Montreal and Gatineau follow, and the five final cities are in the Prairie Provinces: Calgary, Winnipeg, Edmonton, Saskatoon and Regina.
Given the climbing rents throughout the country, if you're in the market for a rental, the time to act is probably sooner than later.
