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Rental.ca and Urbanization released its National Rent Report, and rapidly rising rents are hitting everyone, including those searching for a room to rent, which in Ontario is now $994, up 5.7% since last year.
Finding something affordable in our town appears to be fleeting, as the year-over-year increase for a one-bedroom was 25.4 per cent.
The country's most expensive mid-sized city was Oakville, with average rents of $3,373 for purpose-built and condominium apartments. Burnaby followed at $2,899.
Oakville's average monthly rent in May for a one-bedroom was $2,522, and rent for a two-bedroom was $3,656. The provincial average was $2,202 for a one-bedroom and $2,674 for a two-bedroom.
"Higher rents are on the horizon with interest rates at a 22-year high, rising home prices and record immigration," said Matt Danison, CEO of Rentals.ca Network.
"Gen Z could become the 'Boomerang Generation' moving back in with the parents or the 'Roommate Generation' splitting rent as it's unaffordable for many Canadians to pay rent on their own. Governments at all levels need to come up with creative solutions to increase housing supply."
Since May 2022, Vancouver renters are paying 16 per cent more for a one-bedroom or $2,831 and 8.7 per cent more for a two-bedroom or $3,666, making it the most expensive place in Canada to rent.
Toronto was second on the list, with rents increasing by 17.5 per cent for a one-bedroom or $2,538 and 12.4 per cent for a two-bedroom or $3,286.
"The rental market is expected to heat up further as it enters the seasonal peak for demand during the summer months, driven primarily by an incoming surge in international students and continued deterioration in homeownership affordability as interest rates move higher again," commented Shaun Hildebrand, president of Urbanation.
The Bank of Canada increased its lending rate on June 7 to 4.75 per cent or a quarter of a point, which is pushing up the prices of mortgages and credit as retail banks follow.
