Central Canada’s residential rental markets are reporting steadily-increasing demand ahead of this fall’s anticipated return to offices and post-secondary campuses.
In its monthly National Rent Report published late last week, Rentals.ca said bidding wars have broken out for properties in Vancouver and Toronto, two of Canada’s most competitive markets.
“As employees get called back to the office, and colleges and universities announce their reopening plans, demand has increased significantly in central locations, especially in Toronto and Vancouver where bidding wars are being reported again for rental properties,” Ben Myers, President of Bullpen Research & Consulting, stated in the rent report.
“The luxury rental market is returning, pulling average rental rates up with it,” he added.
With tenants continuing to show a preference for larger suites — likely due to the number of people working from home — prices for two-bedroom condominium and rental apartments are increasing at a faster rate than their one-bedroom counterparts.
Out of the 35 cities analyzed by Rentals.ca, Vancouver maintained its position as the country’s priciest city. In July, the average cost of a one-bedroom increased 6.3 percent month-to-month and 14.4 percent annually to $2,185. Two-bedroom rentals saw growth on a monthly and yearly basis, climbing 10 percent and 14.5 percent to $3,041.
Victoria ranked as the fourth most-expensive location within the top-five Rentals.ca cities, reporting average rents of $1,756 for one-bedroom residences and $2,103 for two-bedroom residences. When examining the province as a whole, British Columbia recorded the highest rental rates in July at an average of $2,175 for all property types, up 10.5 percent monthly and 7.2 percent annually.
Average Toronto rental prices experienced modest increases from June to July, but were still down compared to July 2020 levels. Prices of one-bedroom rentals in the city rose just one percent monthly to $1,855, equating to a yearly decrease of nine percent. In the two-bedroom category, rental prices in Toronto nudged up 4.2 percent month-to-month to $2,606, but stayed 3.2 percent below year-ago prices levels.
Etobicoke and Mississauga earned third and fifth place within Rentals.ca’s ranking. One-bedroom rentals in each location hit $1,802 and $1,753 in July, and $2,361 and $2,129 for two-bedroom rentals during the same month.
Following British Columbia, Ontario reported the second-highest rental rates in July at an average price of $2,024 for all property types, a 3.3 percent monthly increase. However, average rents in the province dropped 2.7 percent from 2020 to 2021.
The average rental price across Canada increased for a third consecutive month in July, rising 1.8 percent month-to-month to $1,752. Prices remained down on a yearly basis last month, falling 1.1 percent.
However, rents have been staging a gradual recovery — July marks the third consecutive month of nationwide price growth, as rents have continued to rise above April 2021’s market low of $1,675. Still, Canadian rents remain below their September 2019 peak, when rental prices averaged $1,954. By comparison, the average rent recorded in July 2021 was approximately $200 less per month.
