Global News assessed aggregated rental data from two Canadian-based agencies, Rentals.ca and Zumper, and concluded that Canada’s largest cities are experiencing rent growth as a result of increased interest rates, a return to the workplace and general changes in daily human migration patterns.
As an investor in rental housing, we are keeping a close eye on rent growth.
Here are some of our key takeaways:
Rising Interest Rates Pushing More Into Rental Market
Recent interest rate hikes mean higher costs for those in search of a place to call home. More and more, many are reconsidering locking themselves into a hefty mortgage commitment amid rising interest rates, turning to the rental market instead.
Ontario & BC Have Canada’s Highest Average Monthly Rental Rates
Ontario, home to Toronto, Hamilton, London, Kitchener-Waterloo, has some of the highest monthly rental rates in Canada. According to the data, Ontario rents are up 1.8% monthly, and 14% year-over-year, with BC experiencing similar increases.
Hamilton is Red-Hot
In Hamilton, the combined average price data on one-bedroom suites suggests increases of $170 more per month, year over year. For two-bedroom rentals, increases of about $280 a month. Hamilton continuously ranks as one of the highest one-bedroom average monthly rents on Rentals.ca and Zumper’s lists.
Rent Growth in Ontario is Predominantly Concentrated in the Southwest
St.Catharines is witnessing a 12 per cent increase in rent year to year. Toronto continues to rank as the highest average price for a one-bedroom apartment at $2100. Housing market correction coupled with recent interest rate hikes mean higher costs for those renting in Canada’s major cities, including Toronto, Hamilton, and St.Catharines. Aggregated data from vacant units say rents are likely to continue to rise as many reconsider hefty mortgage commitments amid rising interest rates.
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