The average rent for all Canadian properties in January 2021 was $1,714 per month, down 8.7 per cent compared to last year. This decline is slightly worse than the average we saw in the second half of 2020, according to the latest data from Rentals.ca and Bullpen Research & Consulting.
“Prospective tenants continue to experience a market flush with choice and have more bargaining power than they’ve had in many years,” said Matt Danison, CEO of Rentals.ca.
For the month of January, Toronto was the second most expensive city out of 35 with average price for a one-bedroom coming in at $1,811. Vancouver, meanwhile, remains the most expensive market for both one- and two-bedroom homes at $1,901 and $2,592 respectively. Year over year, rent for a one-bedroom home in Toronto was down 21.9 per cent, and 18 per cent for a two-bedroom.
“Single-family homes and condominiums for rent continued their downward slide in January, as the most expensive properties continue to get less expensive to rent during the pandemic,” said Ben Myers, president of Bullpen Research & Consulting. “The rental apartment market has been relatively flat over the past six months, with landlords offering a number of incentives to sweeten the pot.”
Other GTA cities
Mississauga finished third on the list for highest monthly rent in January for a one-bedroom home ($1,779) and sixth for a two-bedroom home ($2,097). Year over year, the average price for a one-bedroom home in Mississauga was down 7 per cent, and 8.5 per cent for a two-bedroom.
Etobicoke came in fourth for monthly rent for a one-bedroom home ($1,772) and third for a two-bedroom ($2,175). Year over year, rent for a one-bedroom in Etobicoke declined by 15.6 per cent and 5.8 per cent for a two-bedroom.
Richmond Hill finished fifth on the list for average rent in January for a one-bedroom ($1,742) and $2,143 for a two-bedroom. Year over year, the price for a one-bedroom home in Richmond Hill was down 8.5 per cent, and 9.9 per cent for a two-bedroom.
North York came in eighth for average monthly rent for a one-bedroom home at $1,684 and ninth for average monthly rent for a two-bedroom at $2,063. Year over year, rent for in North York declined by 15.6 per cent a one-bedroom and 15.8 per cent for a two-bedroom.
Markham finished ninth on the list for average monthly rent for a one-bedroom home at $1,664 and 12th for a two-bedroom home at $1,930. Year over year, rent in Markham was down 10.5 per cent for a one-bedroom and 19.3 per cent for a two-bedroom.
Both Kitchener and Hamilton experienced increases in monthly listing prices for apartments and condo rentals with average rent in Kitchener up by 16 per cent to $1,613 and average rent in Hamilton up by 10 per cent to $1,820.
Apartment and condo rentals
For apartment and condominium rentals in Toronto, prices have dropped 21 per cent year over year to $2,000 on average. A year ago in January, Toronto had the most expensive average rent for apartments and condo rentals at $2,528, which at the time was up 8 per cent.
Outside of old Toronto, the areas with the largest annual rent declines in January for apartments and condo rentals were Etobicoke, with a decrease of 18 per cent to $1,926 and North York, with a decline of 15 per cent to $1,936. Mississauga was also down 9 per cent to $1,963, but Brampton’s monthly rent for apartments and condo rentals was up 7 per cent to $1,785.
Other takeaways from the February National Rent Report include:
- Given the latest COVID-19 numbers and the slow vaccination rollout, a return to work en masse is not expected for several months, and could push back the recovery forecast for the second half of this year to 2022.
- Many of the major resale housing markets in Canada are a feeding frenzy of activity, with low interest rates and changing housing demands fueling a buying spree. But it’s not having an impact on the rental market in any meaningful way.
- The latest Canada Mortgage and Housing Corporation data came out in late January, showing the vacancy rate in Canada increasing to 3.2 per cent from 2.2 per cent year over year for apartments, as the pandemic has cut immigration, reduced household formation, and kept many students at home with their parents.
- The average rent per square foot for all property types has declined to $2.25 in January from $2.40 in January 2019.
- St. John’s had the lowest monthly rent of the 35 cities for a one-bedroom home in January at $888, while Red Deer had the lowest monthly rent for a two-bedroom at $1,026.
For the complete report, visit: www.rentals.ca