Inflation, interest rates could shift homeowners to rentals in Canada’s big cities, Hamilton: analysts – Hamilton
The latest monthly rental data from two Canada-based agencies suggests continued inflation and rising interest rates will prompt some to seek accommodation from the perspective of ownership in the rental market.
Rentals.ca and Zumper.com, which aggregate rental vacancy data, say the upward trend in costs in Canada’s largest cities continues amid cooling housing markets in some provinces.
“As central banks around the world fight inflation by raising interest rates, some of the demand will shift from the property market to the rental market,” says Ben Myers, president of Bullpen Research & Consulting. .
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“Exorbitant gas prices can also drive demand for urban locations that are transit-friendly and walkable – the same properties have been hit hard during the pandemic when the benefits of dense neighborhoods close to offices, restaurants and downtown entertainment have become less valuable.”
The average monthly asking rent for all Canadian property types on Rentals.ca in April 2022 was $1,821 per month, an increase of 9% per year.
British Columbia and Ontario continued to have the most expensive rental rates at the end of April, at $2,200 and $2,000 per month respectively, according to the National report on rents, published by Rentals.ca and Bullpen Research.
Zumper says Quebec had the strongest year-over-year growth in rent prices, up 28%, while Barrie, Ont., was the only city where rents were down, down 2.9%.
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Year-over-year, Vancouver saw the largest increase in average rent, 25%, to $2,748 per month, with Toronto and Etobicoke rising 15% and Calgary 13% per year, the data shows. from Rentals.ca.
In Hamilton, the two analysts estimate you’ll need to shell out more than $1,530 a month for a one-bedroom rental, with Rentals’ average being $1,557 and Zumper’s. Canadian Rent Report putting the price at $1,500.
Both reported increases of just over $30 per month in single room rentals in Hamilton month over month.
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From the end of April, Rentals.ca placed Hamilton 19th on its list of 35 cities by highest average monthly rent for a room. The city was nine of 23 on Zumper’s list.
Two rooms in the Hammer will set you back around $1,950, with rental company averages being $1,985 and $1,900, respectively.
The year-over-year increases were $262 per month, according to Rentals.ca, and about $140 according to Zumper estimates.
St. Catharines is seeing similar year-over-year increases, with one bedroom now around $1,430 per month and a two-bedroom at $1,800.
A one-bedroom suite in Toronto costs an average of around $2,027, while two beds will cost a renter around $2,700 per month.
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