Published on March 8, 2022 at 11:13 a.m.
As we emerge from the pandemic and consumer confidence in the market returns, rental prices are up in Canada, and neither are one-bedroom apartments in Oshawa, which are up 20.93% in January from one year to the next. , the largest peak of the 35 cities studied.
The figures are part of Rentals.ca’s Rent Report, which found that the average rent for all Canadian properties listed on Rentals.ca in January was $1,807 per month, up 4.4% per year and 1.0% per month. The average rental rate in January of this year remains lower than the average of $1,879 per month in January 2020 and the average of $1,855 per month in January 2019.
Many municipalities across Canada are experiencing substantial annual increases in average rent, which must be considered in light of the fact that average rents fell during the height of the pre-vaccine pandemic, so comparisons this year will be distorted.
The average rent for a single-family home in January 2022 was $2,652, up 3.2% per month from the December average rent of $2,570, and nearly 20% above average of last January of $2,215.
Condominium apartments in January 2022 increased from $2,227 per month in December 2021 to $2,256 per month in January 2022, a monthly increase of only 1.3% but an annual increase of 13.8%.
Average apartment rental rates increased 1.0% month-over-month from $1,622 in December 2021 to $1,639 per month in January 2022. Compared to January 2021, average rents apartments increased by 2.1%.
Average rent increased for one-, two- and three-bedroom units month-over-month and year-over-year.
One-bedroom units went from $1,567 in December 2021 to $1,574 in January 2022, a monthly increase of less than half a percent, while the annual increase was 3.3%, which makes Oshawa’s peak even more remarkable.
Two-bedroom units went from $1,919 in December 2021 to $1,941 in January 2022, a monthly increase of 1.1%. Two-bedroom units have also increased by 6.2% per year, from $1,828 in January 2021. Interestingly, average prices for two-bedroom units in Oshawa are $1,739, which is cheaper than one bedroom units.
Three-bedroom units went from $2,287 in December 2021 to $2,328 in January 2022, a monthly increase of 1.8%. Three-bedroom units also rose 7.7% annually, from $2,161 in January.
On an absolute basis, rents for larger units appreciate faster, but when you control unit size, all room types increase at a similar rate of 4-5% year over year.
In January 2022, the average rent per square foot for a condominium apartment in downtown Toronto was $3.70. Since January 2021, the average rent per square foot has gradually increased, increasing by 19% per year. This follows an unprecedented drop of 21% in a single year between January 2020 and January 2021.
The downtown market remains well below rent levels of two years ago, with current rents about 6% below previous peak levels.
The rest of the GTA followed a similar trend, with the average rent per square foot increasing steadily throughout 2021, from $2.90 per square foot in January 2021 to $3.27 per square foot in January 2022, or an annual increase of 12.8%. Rents outside the city center are now back to pre-pandemic levels.
After the typical seasonal decline in December, average rental rates in Canada have started to rise again. Fears that the Omicron variant could derail the economy and lock down the country again have subsided, with tenants once again looking for accommodation to rent.
The strongest growth continues to be for single-family rentals, as many potential buyers choose to rent, fearing the property market has become too “foamy.” Potential government intervention in the property market and future interest rate hikes play a role in their decisions to rent. The second reason single-family rentals are increasing is an increase in investor activity in a more upscale single-family product, which requires higher rents.
In Toronto, the downtown core has been hardest hit by the pandemic, as average rents per square foot have fallen at a faster rate than the rest of the GTA. This premium has started to widen again, with average rents per square foot in downtown Toronto growing at a faster rate than in the rest of the GTA. Bullpen Research & Consulting expects this trend to continue as tenants slowly begin to return to the office.
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