Toronto continues to be the second-most expensive rental market in Canada, while the average rent across the country is up 12 per cent from last year, reaching a record-high of $2,024 for all rental types.
This according to the latest data from Rentals.ca and Urbanation – a real estate research firm – which revealed that the steepest rent increases in the country, both month-over-month and year-over-year, have largely been in and around Canada’s two most expensive cities; Toronto and Vancouver.
“Among major markets in Canada with populations over one million, average rents for purpose-built and condominium apartments increased fastest for the most expensive cities, with Vancouver and Toronto rents up 24.3% and 23.7% [compared to last year], respectively,” the report read.
“One-bedroom rents averaged $2,661 in Vancouver and $2,551 in Toronto, while two-bedroom rents averaged $3,707 in Vancouver and $3,363 in Toronto.”
Medium-sized cities in the Greater Toronto Area (GTA) have also seen stark year-over-year increases, as have specific areas within the City of Toronto.
“Among medium-sized markets, purpose-built and condominium rents increased fastest over the past year in several cities that surround Toronto, including Brampton (28 %), North York (25.8%), Etobicoke (24.5%), Scarborough (22.9%) and Mississauga (19.2%),” the report read.
Overall, average rent across Canada increased last month by 2.5 per cent compared to October, with a similar month-over-month increase seen in Toronto and other GTA markets.
Markets west of the GTA have also seen big rent increases compared to last year, with London and Kitchener rents up 27.9 per cent and 24.1 per cent, respectively, while markets such as Barrie and Hamilton recorded annual rent increases in the 17-19 per cent range.
Behind Vancouver and Toronto, Calgary saw the third-largest annual jump in average rental prices amongst Canada’s major cities, at 21.9 per cent.
“Rents in Calgary were substantially less expensive than in Vancouver and Toronto at an average of $1,572 for one-bedrooms and $1,978 for two-bedrooms,” the report read.
Meanwhile in Montreal, Canada’s largest rental market, last month’s average rent was up by less than eight per cent compared to last year, which was the lowest increase amongst the country’s major cities.
Average rental prices in Montreal sit at $1,574 for one-bedrooms and $2,076 for two-bedrooms.
To assist low-income renters across the country struggling to make rent payments, the federal government opened applications on Monday for a one-time, $500 top-up to the Canada Housing Benefit.
But in many markets across the GTA, $500 may only be a stopgap solution to a larger issue most experts don’t expect to be resolved anytime soon.
As Ontario deals with what many are calling a housing crisis, lingering inflation and rising interest rates, rental prices are expected to keep rising into next year.
