Rents and housing prices go in opposite directions
Immigrants coming to Canada from India, China, The Philippines, Nigeria, Ukraine and other parts of the world are now finding it more difficult to get affordable apartments to rent in the sizzling hot rental market.
One of the biggest questions most of these new immigrants are asking is where to find the cheapest rents in Canada.
The average rent for all property types across Canada has climbed to an all-time record of over $2,043 per month, representing an annual increase of 15.4%.
The average rent for single-family homes in September 2022 was $3,014 per month, which is 12.1% higher than in September 2021.
Why are rents rising so fast in Canada?
Here are the 4 main reasons why rents are increasing rapidly:
High interest and mortgage rates
An unintended consequence of falling prices house prices arising from the high-interest rate is the increased pressure on rental housing.
Households who would have transitioned from rental to owned housing, have postponed the decision temporarily, resulting in greater pressure on rental markets.
Back to the office or hybrid
Another contributing factor is teleworking, which allowed many to work remotely from home during the pandemic. As a result, some workers gave up relatively smaller yet expensive leases near central employment hubs for cheaper and larger dwellings in smaller towns.
From parents’ homes to campus
For example, college and university students, who had primarily retreated to their parents’ homes during the pandemic, were back on campus in September
With employers calling their workers back to offices, the demand for rental properties near employment hubs has been increasing, putting pressure on rents.
New immigrants and refugees
New immigrants, refugees and asylum seekers are pouring into Canada in greater numbers. Over 1.2 million new immigrants are expected to land in Canada over the next three years at the rate of 400,000 per year.
“Emergency immigrants” and refugees from Ukraine and other war-affected countries will add to those numbers. And they will all be requiring housing.
The most expensive cities to rent an apartment
|Rank||City/Area||1 BED||Y/Y change|
|9.||North York, ON||$2,022||18.0%|
|17.||East York, ON||$1,795||9.8%|
|25.||St. Catharines, ON||$1,595||15.8%|
|33.||Fort Mcmurray, AB||$1,060||-0.3%|
Latest 2022 Rent Report
The 10 cheapest cities to rent an apartment in Canada
- Red Deer, AB; $881
- St. John’s, NL: $894
- Saskatoon, SK: $929
- Regina, SK: $970
- Quebec City, QC: $981
- Edmonton, AB: $922
- Fort McMurray, AB: $1,062
- Winnipeg, MB: $1,168
- Calgary, AB: $1,216
- London, ON: $1,239