A new report indicates a major market shift
The average asking rent for all Canadian properties in May grew by 2% month over month, representing the first increase after six straight months of declines, according to the latest National Rent Report by Rentals.ca and Bullpen Research & Consulting.
This upward movement placed the average rent at $1,708, and represented the “first definite sign of a market turnaround,” said Ben Myers, president of Bullpen Research & Consulting.
“COVID-19 has had a major impact on rental rates, sending them plunging, especially in the downtown core areas of Canada’s largest cities,” Myers said of the past year’s trends. “The ramp-up in the vaccine rollout and anticipated return to normalcy has tenants trying to get in before rents trend up, increasing demand for all product and bedroom types in May, especially in Vancouver and Toronto.”
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Single-family homes had a remarkable 18% increase in average monthly rental rate from January
($2,214) to May ($2,608), with the report citing anecdotal evidence of “bidding wars and tenants renting homes sight unseen.”
Condos saw their average rentals rise from $1,985 in January to $2,026 in May, while apartments had a decrease from $1,604 in January to $1,597 in May.
Vancouver continues to be the market with the highest average monthly rent for one-bedroom homes (1,981, up by 2.4% month over month) and for two-bedroom offerings ($2,760, up by 7%).
And “with the promise of the border opening to further immigration, international students and tourism, rental rates are expected to continue to rise,” the report said. “The fall of 2021 could be a busy season for landlords and tenants.”
