As evidenced by current rents, Canada's rental market is continuing its upward trend as life slowly begins to return to normal(ish) with the loosening of pandemic restrictions.
According to the latest National Rent Report from Rentals.ca and Bullpen Research and Consulting, the average rents for Canadian properties is approaching pre-pandemic levels. The average rent for all Canadian properties listed in February was $1,820 per month, an increase of 6.2% annually.
In August 2019, national average monthly rents hit a high of $1,954. By the worst of the pandemic in April 2021, national average rent prices had declined to a low of $1,676. By the beginning of 2022, however, rents were back to the low $1,800s.
“The rental market overall in Canada continues to trend upward in the post-vaccine pandemic period, with continued strength in the market for larger suites,” said Ben Myers, president of Bullpen Research & Consulting. “Growth in average rents for one-bedroom units lags other bedroom types, with two-, three- and four-bedroom units exceeding February 2020 pre-COVID-19 rent levels last month. British Columbia, specifically Vancouver, and downtown Toronto are leading the market recovery, pushing rents up nationally.”
As the report highlights, this is the sixth consecutive month that average asking rents for all property types have shown an increase year-over-year based on rentals.ca listings, following 16 consecutive months of annual decline. Over the last five months, annual increases ranged between 1.6% in October 2021 and 6.2% in February.
Toronto 2-Bedroom Rents Up 15% From Last Year
Toronto -- where rents were climbing in the direction of Manhattan pre-pandemic -- finished second on the list of 35 cities for average monthly rent in February for a one-bedroom. Here, one-bedrooms were on average $2,044 for a one-bedroom and $2,778 for a two-bedroom. Year over year, the average monthly rent for a one-bedroom in Toronto was up 12.7% and 15.1% for a two-bedroom. Month over month, the city saw the average rent in Toronto up 0.4% and down 0.7% for a two-bedroom.
This was a big turnaround through the pandemic, as the city’s annual average rent had declined 20 per cent in February 2021 to $1,994.
Toronto had the second highest annual change in average monthly rents for condo rentals and apartments, rising year over year by 16% to $2,312. This marks a notable rebound through the pandemic; the city’s annual average rent had declined 20% in February 2021 to $1,994.
Toronto wasn’t the only GTA city to make the list of 35. Oakville finished fourth on the list for average monthly rent in February for a one-bedroom home, costing $1,922, and fifth for average monthly rent for a two-bedroom at $2,421. Year over year, average monthly rent for a one-bedroom in Oakville in February was up 9.8%. Meanwhile, a two-bedroom was up 14.8%.
Not too far away, Etobicoke was fifth on the list for average monthly rent in February for a one-bedroom unit, at $1,860. The region ranked fourth for average monthly rent for a two-bedroom, at $2,452. Year over year, average monthly rent in February for a one-bedroom in Etobicoke was up 6.4 per cent and up 13.2 per cent for a two-bedroom.
Etobicoke was fourth on the list for average monthly rents for condo rentals and apartments in February with an annual increase in average monthly rent of 12 per cent to $2,155, after being down 15 per cent in February 2021 to $1,929.
Meanwhile, east of Toronto, once underdog Oshawa finished sixth on the list for average monthly rent in February for a one-bedroom home at $1,822, and 21st for average monthly rent for a two-bedroom at $1,846.
Mississauga came in seventh on the list for average monthly rent in February for a one-bedroom home at $1,776 and eighth for average monthly rent for a two-bedroom at $2,193. Year over year, average monthly rent in February for a one-bedroom in Mississauga was up 0.9% and up 6.6% for a two-bedroom.
North York finished 10th on the list for average monthly rent in February for a one-bedroom home at $1,724 and ninth for average monthly rent for a two-bedroom at $2,125. Year over year, average monthly rent in February for a one-bedroom in North York was up 1.9% and up 0.7% for a two-bedroom.
Vaughan ranked 12th for average monthly rent in February for a one-bedroom home at $1,671 and seventh for average monthly rent for a two-bedroom at $2,208. Year over year, average monthly rent in February for a one-bedroom in Vaughan was up 2.2% and up 11.5% for a two-bedroom. Month over month, average rent in Vaughan was up 4.2% for a one-bedroom and up 3.1% for a two-bedroom.
Brampton finished 17th on the list for average monthly rent in February for a one-bedroom home at $1,514 and 19th for average monthly rent for a two-bedroom at $1,888.
On the west coast, the infamously pricey Vancouver had the highest year-over-year change in average monthly rents for condo rentals and apartments, increasing by 23% $2,661 in February. Victoria is close behind, with an annual increase of 22% to $2,106 per month. However, Vancouver and Victoria experienced annual rent declines of 6% and 4% respectively in February 2021.
In Quebec, Gatineau was third on the list, with a year-over-year increase in average monthly rent of 14% to $1,586; this after an increase of 11% in annual average rent in February 2021 to $1,386.
With the loosening of pandemic restrictions and the return to the physical office, the demand for rentals is gradually increasing. As a result, this is likely not the last we’ll see of climbing rental prices. “Rents could continue to push higher in the near future because of increasing demand reinforced by supply chain disruptions, record inflation, increasing interest rates and much higher gas prices,” reads the report.
