Major takeaways from September’s National Rent Report

Posted by Martina Gezic on November 1st, 2019

Every month, data is collected and analyzed to create a clear picture of the Canadian rental market from coast to coast. These stats show trends in rental rates, renovations and remodels, affordability, types of rentals available, income-to-rent ratios and more.

These monthly reports help to show patterns in the rental market and allow experts to compare stats year over year. They also show emerging problems and help renters and landlords prepare for the future.

Here are some key takeaways from the National Rent Report:

Average rents were down

While renters would likely dispute the fact that rents are going down, there is a reasonable explanation for this. The average rents across the country are down for the second month in a row but are higher than at the end of 2018. Also, the numbers include all rental dwellings – apartment units, condos (high-rise and townhome) and single-family rental houses. The reason the average rents dropped isn’t because individual rents went down, but rather that the stock of condos and houses for rent in Canada dropped. Since condominiums and houses are more expensive to rent, fewer of these equals a drop in the national average.

Landlords go luxury

Many landlords are upgrading and renovating rentals to give tenants more in-unit and building amenities. Many renters surveyed said they’d be willing to pay higher rents for renovated kitchens and bathrooms. Because of these efforts, it’s projected that annual rent increases will go into the double digits by next year. Many landlords fix up units as tenants move out, so they can change a higher rate to new tenants moving into the renovated unit.

Affordability

On average, renters in Toronto are spending 42 per cent of their income on rent. Renters in Vancouver are spending 34 per cent. The differences might have to do with unit sizes and whether or not the tenants have roommates. Apartments are smaller in Vancouver. The Canadian Mortgage and Housing Corporation recommends spending no more than 30 per cent of your income on rent – something that’s becoming harder and harder to attain for the average Canadian.

If you’re looking to live someplace with affordable rents, Gatineau, Quebec; Quebec City, Quebec; Lethbridge, Alberta; Saskatoon, Saskatchewan; and Red Deer, Alberta are your best bets.

Ten of the 11 most expensive cities to rent in are located in Ontario. Vancouver is third.



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