In a positive sign that recovery is underway, centrally located luxury rentals in Toronto and Vancouver are increasing in both demand and in price, according to the latest National Rent Report from Rentals.ca’s and Bullpen Research & Consulting.
“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,” said Ben Myers, president of Bullpen Research & Consulting. “The luxury rental market is returning, pulling average rental rates up with it.”
Canada’s average rental rent has increased for the third month in a row, rising to $1,752 in July but down 1.1 per cent from a year ago. The market peaked in September 2019 at $1,954, before falling 14.3 per cent to a low of $1,675 in April 2021. The average rental rate has since increased by 4.6 per cent, erasing some of the pandemic-related declines, but average monthly rents are still $200 cheaper than they were in September 2019.
Larger units wanted
As the country continues to reopen, tenants continue to show a preference for larger units as well as centrally located luxury rentals.
On a provincial level, British Columbia had the highest rental rates in July, with landlords seeking $2,175 per month on average for all property types, an increase of 10.5 per cent monthly and 7.2 per cent annually. Ontario had the second highest rental rates in July averaging $2,024 per month. This is an increase of 3.3 per cent monthly, and a decrease of 2.2 per cent annually.
Meanwhile, Montreal had the largest month-over-month decline in average rent per square foot in July for condo rentals and apartments, decreasing 6.2 per cent to $2.21. Vancouver had the largest monthly increase in average rent per square foot, increasing 4.5 per cent to $3.66. Etobicoke and Ottawa also had increases in average rent per square foot, increasing by 1.9 per cent to $2.82 and 1.7 per cent to $2.36, respectively.
See the complete report, as well as a breakdown of Canada’s rental markets here: Rentals.ca August 2021 Rent Report