Rent prices continue to surge amid transitioning real estate market

 Overview of rental prices 

Rental prices across Canada continue to surge, with the latest stats showing that the average rental price reached an all-time high in certain locations. In August 2022, the average rent for all property types in Canada was $1,959 per month, an annual increase of 11.1% from the prior year. Rental costs were up 1.3% month-on-month. The average rent was $1,676 in April 2021, and August represents a 16.8% increase from those low levels. 

Single-family homes commanded the highest rental amount, with an average of $3,061 per month. While condos rented for an average of $2,312, their price per square metre was significantly higher than single-family homes. Looking at it on a provincial level, the highest average rent was in British Columbia ($2,578), and the lowest average was in Saskatchewan ($1,101). 

Why do rental prices keep going up? 

What is causing the surging rental prices? There are a few theories. Firstly, the housing supply is considered insufficient, meaning that the number of new homes being built cannot keep up with the number of people looking to rent. Therefore, there is an oversupply of demand (People looking to rent), and an undersupply of housing (Available places to rent). Secondly, fewer people are buying now, as the interest rates have been steadily rising, and therefore some people who may have considered buying are now renting instead. Lastly, many companies now require employees to return to work, forcing some people to move closer to their offices, often in and around the city centers. 

Students are badly affected 

The rental prices have been particularly challenging for students across Canada, many of them earning less than $20,000 per year. This is a bigger problem in Greater Toronto and Vancouver, where some students spend more than half their income on housing. To help combat this problem, Prime Minister Trudeau recently announced a once-off top-up of $500 to the Canada housing benefit, which will aid struggling renters. 

Do you own a rental? 

Perhaps you own a rental property and are looking to market your property for rent? Quality real estate photography is vital to marketing your property. SnapHouss can assist you with this. Not only is it important to market your property well when selling it, but it is equally important to market it well when looking for a tenant. The more appealing you can make your property, the more likely you will find a good-paying tenant. Reach out to us today and let us help you secure the tenant of your dreams!