The uncertain housing market has resulted in a drastic increase in real estate costs across the country. This, in turn, has caused rental costs to skyrocket from coast to coast to coast as the country pulls itself out of the pandemic way of life.
Here in Kingston, the average rent for a two-bedroom home has increased almost 19 per cent year over year for the past three years, according to the latest National Rent Report compiled by Bullpen Research & Consulting for Rentals.ca.
The report is based on monthly listings from Rentals.ca, and includes basement apartments, rental apartments, condominium apartments, townhouses, semi-detached houses, and single-detached houses. The report analyzes year-over-year changes across a three-year term, from May 2019 to May 2022. In this article, the term ‘year over year’ will refer solely to those changes across that three-year term
Year over year, the average monthly rent in May for a one-bedroom apartment in Kingston was down 5.2 per cent, but up 18.9 per cent for a two-bedroom, according to the report.
The average rent for all Canadian property types listed on Rentals.ca increased 3.7 per cent from April to May this year, which, the report found, was the largest monthly increase since May 2019.
“After relatively flat rents on average in Canada during the first four months of the year, rents rose sharply in May, as interest rate hikes dissuaded would-be buyers from leaving the rental market,” said Ben Myers, president of Bullpen Research & Consulting. “The typical seasonal increase in demand in the spring, coupled with renewed interest in more expensive downtown properties in Vancouver and Toronto, also contributed to the rise in rents nationally.”
According to the report, the average rent for all Canadian properties listed on Rentals.ca was $1,888 per month in May 2022, which represents a year-over-year increase of 10.5 per cent. This also represents a month-over-month increase of 3.7 per cent, the largest monthly increase since May of 2019.
The report ranked 35 cities by average monthly rent in May for both one-bedroom homes and two-bedroom homes. Kingston came in at 26 on the one-bedroom home list, at $1,380, and 21 on the two-bedroom list, at $1,953.
Unsurprisingly, Vancouver and Toronto top the list as the most expensive cities to rent either a one or two-bedroom home.
“After a couple of months of stagnation in the market following a rapid rise in rates in the second half of last year, the Canadian rental market experienced the largest monthly increase in average rents since 2019,” the report concluded. “The average monthly rental rate for single-family homes continues to rise, moving from $2,609 in May 2021 to $2,881 in May 2022, a rise of 10 per cent annually, and slightly above the market peak in 2019. Anecdotal evidence shows bidding wars, and tenants renting homes, sight unseen.”
“Uncertainty in the ownership housing market, and the delay in delivering new supply due to supply-chain delays and labour stoppages, should continue to put upward pressure on rents into the fall of this year in the face of increased demand.”