Renters under pressure: When will the fever break in the hot rental market?
Ask the average renter and they can tell you: Canadian rents have soared in recent years.
The latest data from Rentals.ca and Urbanation shows the average asking rent for all property types in May rose above $2,200 for the first time. That’s up 9.3 per cent year over year, the same jump seen the month before.
In some of Canada’s least affordable markets, like Toronto and Vancouver, two-bedroom apartments are now costing renters well over $3,000 a month.
And while rental rates remain well below that mark in most cities outside Ontario and British Columbia, cities such as Edmonton and Regina were recording average annual rent hikes in the double digits for single-bed units in May.
Economists who spoke to Global News say there are reasons for hope among Canada’s renters after years of mounting pressure in a tight market.
While efforts to boost rental supply and slow the pace of population growth in Canada should help to “at least stabilize” soaring rents in some parts of the country, experts warn renters should not expect to pay a lot less on their leases any time soon.
“Even if (rents) don’t grow as quickly, they’re still going to stay high,” says Randall Bartlett, senior director of Canadian economics at Desjardins.
The stabilization in rents that experts are expecting is already underway in some markets.
The Rentals.ca and Urbanation data shows that the three-month average for rents across the country fell 0.4 per cent despite increases on a monthly and annual basis. The release classified this as a “moderation” in rents following sharp upticks last year.
And while Toronto and Vancouver remain among the most unaffordable cities for renters, the silver lining is that their annual change rates have started to dip negative.
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