As the federal election inches closer, Canada’s skyrocketing rental rates continue to be a hot button issue, with recent data from rentals.ca underscoring the need for more balance within the housing market.
According to the latest National Rent Report, the average monthly rent for a one-bedroom home is down month over month in Toronto but still the highest in Canada, while a growing Ottawa suburb, Kanata, takes the top spot for highest rent for a two-bedroom at almost $3,000 a month.
Average monthly rent for a one-bedroom home in Toronto in September is $2,304, down from $2,330 in August, while a two-bedroom goes for $2,908. Average monthly rent for a two-bedroom for the hi-tech centre Kanata hit $2,998, while a one-bedroom goes for $2,169.
The average Canadian property was listed for $1,954 per month in September, an increase of 2.1 per cent compared to August. The national rental rate in September just topped the previous high-water mark for the year of $1,953 in June, according to Rentals.ca data.
On a provincial level, Ontario had the highest rental rates in September, with landlords seeking $2,334 per month on average (all property types), an increase of 0.5 per cent from August ($2,321).
As the graphic below indicates, a studio unit in Ontario is more expensive to rent than a three-bedroom home in Alberta, Manitoba and Saskatchewan.
The median rent was the same or higher in Q3-2019 versus Q2-2019 in most of the major municipalities on the east side of Canada, while many geographic areas on the west side of the country, including Vancouver, Calgary, Edmonton, Saskatoon, Regina and Red Deer all experienced declines.
“Housing affordability continues to be a hot button issue with voters going into the federal election,” said Ben Myers, president of Bullpen Research & Consulting. “And potential policy changes that would make it easier for first time-buyers to purchase a home may take pressure off the rental market, which continues to rise nationally, despite the market softness in the prairie provinces.”
The National Rent Report charts and analyzes national, provincial and municipal monthly and quarterly rental rates and market trends across all listings on Rentals.ca for Canada.