Record rise in rents in July in the Canadian rental market
According to a recent report, the Canadian rental market saw the average rent reach an all-time high in July. This stands at $2078, which is a huge increase of 8.9% from last year. This growth is the fastest observed in the last three months.
The average asking rent increased by 1.8% from June to July, an unprecedented rate for a period of one month during of the previous eight months. Compared to July 2021, this increase is 21%, which equates to an additional cost of $354 on average per month for renters.
There are several reasons for this skyrocketing rental cost . Rentals.ca and Urbanation, the two entities behind this report, identify several contributing factors, including:
- An increase in the number of post-secondary students seeking accommodations before the fall start ;
- Unprecedented population growth;
- Potential buyers delaying home purchases due to rising interest rates.
Shaun Hildebrand, president of Urbanation, points out in a press release that the country's rental market is currently subject to a combination of factors that are driving rental costs to unprecedented levels.
Other reasons he cites strong seasonal rental demand, a welcoming migration policy, rapidly rising incomes and increased difficulties in accessing property.
