Canadian lease costs attain a three-year excessive, up 17% from pandemic lows

Having been on an upward development since early final yr, common lease costs have now eclipsed pre-pandemic ranges.

The typical lease for all property sorts listed on in August hit a three-year excessive of $1,959 per 30 days, up 1.3% from July and 11.1% from August 2021, based on the positioning’s newest nationwide lease report. Rents have now risen 16.8% since hitting a low of $1,676 in April 2021.

“…potential tenants [are now] properties which are $200 costlier on common than a yr earlier,” mentioned Ben Myers, president of Bullpen Analysis & Consulting.

The typical lease for single-family properties rose 13% year-over-year to $3,061, whereas the rents for condominium flats have been up 7% in August to $2,312. Residence rents have been up 5.5% to to $1,729.

Market coping with a surge in demand…and extra to return

Rental demand has been rising step by step since early 2021, however noticed a further enhance as dwelling costs started to fall this spring.

In occasions of resale housing cooling, “demand by necessity shifts into leases,” Myers famous in a earlier report. “Throw in robust inhabitants progress, and we find yourself with a dramatic strengthening within the rental market in main metros.”

Provided that extra Financial institution of Canada price hikes are nonetheless anticipated, which can proceed to have a cooling effecting on the nation’s housing market, the report suggests that might drive extra demand into the rental market.

“With one other rate of interest hike from the Financial institution of Canada, potential consumers are additional dissuaded from shopping for, which means even larger demand in a rental market already crowded from booming immigration, college students returning to school, and staff transferring again to metropolis centres,” it famous.

Myers added that pageviews information suggests rental demand is up by virtually 40% nationally from final August, and 70% from the “locked-down August 2020 market.”   

A cross-country have a look at common rents

At a provincial degree, the Atlantic provinces noticed the steepest lease will increase over the previous yr, with costs up 43.4% to $2,380 in Nova Scotia, 29.9% in Newfoundland and Labrador, and 29.4% in New Brunswick.

When it comes to the very best general lease for all property sorts, British Columbia as soon as once more topped the record with a median month-to-month lease of $2,578. That’s up 23.7% over the previous yr.

Subsequent up was Ontario, with a median lease of $2,367, up 15.7% since final yr. Of the provinces, Manitoba noticed the smallest improve, with common rents rising 0.8% year-over-year to $1,396.

On the municipal degree, the next are the cities which have seen the biggest year-over-year lease will increase (amongst rental and condominium flats) up to now this yr:

  • London, ON: $1,979 (+26.5%)
  • Calgary, AB: $1,751 (+24.7%)
  • Vancouver, BC: $3,184 (+24.4%)
  • Toronto: $2,694 (+24.2%)
  • Hamilton: $1,961 (+21%)