The average monthly rent for a one-bedroom home is down month over month in Toronto but still the highest in Canada, while a growing Ottawa suburb, Kanata, takes the top spot for highest rent for a two-bedroom at almost $3,000 a month.
Average monthly rent for a one-bedroom home in Toronto in September is $2,304, down from $2,330 in August, and a two-bedroom goes for $2,908, according to the October National Rent Report produced by Rentals.ca and Bullpen Research & Consulting.
Average monthly rent for a two-bedroom for the hi-tech centre Kanata hit $2,998 while a one-bedroom goes for $2,169.
Oakville finished eighth of 34 cities on the list for average monthly rent for a one-bedroom home at $1,767 and fifth for average monthly rent for a two-bedroom at $2,395.
The Greater Toronto Area had five areas in the report besides Toronto and Oakville, and all were in the top 13 of 34 cities listed including Etobicoke, Richmond Hill, Mississauga, Burlington and Scarborough.
“The housing measures proposed (by candidates) won’t likely be able to restore the balance between supply and demand in British Columbia and Ontario, as demand continues to be held up by strong population growth.”
Etobicoke finished third among 34 cities and areas listed for average monthly rent for a one-bedroom home at $2,050 and fourth for average monthly rent for a two-bedroom at $2,564.
Richmond Hill finished fifth on the list for average monthly rent for a one-bedroom at $1,925 and sixth for average montly rent for a two-bedroom at $2,391.
In nearby Mississauga, the average monthly rent for a one-bedroom home last month was $1,907 placing the city in sixth place on the list. The municipality finished seventh for average monthly rent for a two-bedroom at $2,301.
Burlington finished seventh for a one-bedroom and Scarborough 13th.
Rental rates per square foot in the Toronto condo rental market continue to trend upward, but the chart below shows that average studio and three-bedroom rents have been relatively flat over the past year, while one-bedroom and two-bedroom units slowly appreciate.
The average Canadian property was listed for $1,954 per month in September, an increase of 2.1% compared to August. The national rental rate in September just topped the previous high-water mark for the year of $1,953 in June, according to Rentals.ca data.
On a provincial level, Ontario had the highest rental rates in September, with landlords seeking $2,334 per month on average (all property types), an increase of 0.5% from August ($2,321).
From the graphic below, a studio unit in Ontario is more expensive to rent than a three-bedroom home in Alberta, Manitoba and Saskatchewan.
The median rent was the same or higher in Q3-2019 versus Q2-2019 in most of the major municipalities on the east side of Canada, while many geographic areas on the west side of the country, including Vancouver, Calgary, Edmonton, Saskatoon, Regina and Red Deer all experiencing declines.
A recent report on the rental market in Canada by RBC Economics concludes Toronto is 9,100 units short on rental supply, Montreal is 6,800 units short and Vancouver is 3,800 units short. These estimates are based on the number of units required to reach a 3% vacancy rate.
Other takeaways from the October National Rent Report include:
- Rentals.ca explores the question of whether the Oct. 21 election will make a difference in solving Toronto’s low vacancy rates, high rents and affordable housing crisis in this election primer. From the rent report: “The housing measures proposed (by candidates) won’t likely be able to restore the balance between supply and demand in British Columbia and Ontario, as demand continues to be held up by strong population growth.”
- Thirteen of the top 18 cities on the list of 34 cities are in Ontario and the other five are in British Columbia.
- Toronto (former City boundaries, pre-amalgamation) is the highest priced rental apartment market with an average rent of $2,200, compared to $2,156 in East York, and $2,103 in Vancouver. Yellowknife has higher average rents than many Ontario municipalities at $1,929 per month.