Why are rents rising so fast in Canada?

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Immigrants coming to Canada now, have more difficulties to get affordable apartments to rent in the sizzling hot rental market.

One of the biggest questions most of these new immigrants are asking is where to find the cheapest rents in Canada.

 

The average rent for all property types across Canada has climbed to an all-time record of over $2,043 per month, representing an annual increase of 15.4%.

 

The average rent for single-family homes in September 2022 was $3,014 per month, which is 12.1% higher than in September 2021.

 

We can name four main reasons:

 

1.High interest and mortgage rates

An unintended consequence of falling prices house prices arising is the increased pressure on rental housing.Households who would have transitioned from rental to owned housing, have postponed the decision temporarily, resulting in greater pressure on rental markets.

 

2.Back to the office or hybrid

Another contributing factor is long distance working option which allowed many to work remotely from home during the pandemic. As a result, some workers gave up relatively smaller yet expensive leases near central employment hubs for cheaper and larger dwelling in smaller cities or towns

 

3.From parents’ homes to campus

For example, college and university students, who had primarily retreated to their parents’ homes during the pandemic, were back on campus in SeptemberWith employers calling their workers back to offices, the demand for rental properties near employment hubs has been increasing, putting pressure on rents.

 

4.New immigrants and refugees

New immigrants, refugees and asylum seekers are pouring into Canada in greater numbers. Over 1.2 million new immigrants are expected to land in Canada over the next three years at the rate of 400,000 per year.“

 

Emergency immigrants” and refugees from Ukraine and other war-affected countries will add to those numbers. And they will all be requiring housing.

 

The most expensive cities to rent an apartment in 2022

Rank

City/Area

1 BED

Y/Y change

1.

Vancouver, BC

$2,590

20.2%

2.

Toronto, ON

$2,474

27.5%

3.

Burnaby, BC

$2.292

N/A

4.

Oakville, ON

$2,178

10.2%

5.

Burlington, ON

$2,165

18.7%

6.

Victoria, BC

$2,148

N/A

7.

Etobicoke, ON

$2,137

19.3%

8.

Guelph, ON

$2,052

20.3%

9.

North York, ON

$2,022

18.0%

10.

Brampton, ON

$2,019

24.4%

11.

Mississauga, ON

$1,947

17.7%

12.

Ottawa, ON

$1,909

17.7%

13.

Vaughan, ON

$1,889

1.0%

14.

Kitchener, ON

$1,888

24.7%

15.

Markam, ON

$1,810

0.4%

16.

London, ON

$1,810

38.8%

17.

East York, ON

$1,795

9.8%

18.

Barrie, ON

$1,788

NA

19.

Scarborough, ON

$1,733

7.0%

20.

Halifax, NS

$1,711

8.7%

21.

Hamilton, ON

$1,683

8.4%

22.

Oshawa, ON

$1,665

12.0%

23.

Surrey, BC

$1,650

17%

24.

Calgary, AB

$1,629

29.0%

25.

St. Catharines, ON

$1,595

15.8%

26.

Gatineau, OC

$1,561

7.1%

27.

Napean

$1,550

1.1%

28.

Montreal, QC

$1,532

1.7%

29.

Laval, QC

$1,362

5.1%

30.

Winnipeg, MB

$1,185

2.5%

31.

Lethbridge, AB

$1,123

14.1%

32.

Edmonton, AB

$1,073

5.1%

33.

Fort Mcmurray, AB

$1,060

-0.3%

34.

Regina, SK

$1,010

3.2%

35.

Saskatoon, SK

$980

8.8%

 

Average

$1,743

2.70%

The 10 cheapest cities to rent an apartment in Canada

  1. Red Deer, AB; $881
  2. John’s, NL: $894
  3. Saskatoon, SK: $929
  4. Regina, SK: $970
  5. Quebec City, QC: $981
  6. Edmonton, AB: $922
  7. Fort McMurray, AB: $1,062
  8. Winnipeg, MB: $1,168
  9. Calgary, AB: $1,216
  10. London, ON: $1,239

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