Hamilton's Lower Rental Prices Appeal to Newcomers
According to the most recent rental report from Rentals.ca, a one-bedroom in Hamilton in November costs $1,482 per month. That's down 4.94 percent from October. Year over year, the rent price for a one-bedroom in this city of 536,920 located at the western end of Lake Ontario is up 2.35 percent
Now, compare that to rents for November in Toronto, just 75 kilometres away down the Queen Elizabeth Highway. The average price for a one-bedroom in Toronto was $2040! That's up 1.69 percent from October 2021 and up 7.99 year-over-year.
Rent prices are on the rise nationally
Nationally, the average rent for all Canadian properties listed on Rentals.ca in November was $1,817 per month, up 3.6% annually and 1.0% from October 2021.
Ben Myers, President of Bullpen Research & Consulting and rental market commentator for Rentals.ca, said that “toward the end of 2021, the average rents across Canada have nearly recovered to the same levels seen at the start of 2020, and we expect they will continue to rise above 2019-peak levels in 2022.”
Hamilton continues to be a bargain for rent prices
The Rentals.ca December 2021 Rent Report predicts that in 2022 Toronto will see the highest spike in rental prices with rent prices forecast to jump 11% to a new average of $2,495.
Hamilton continues to look like a bargain even in comparison to Mississauga where prices are expected to rise dramatically as well. A popular landing spot for newcomers to Canada, according to the city of Hamilton website "one in four people in Hamilton was born outside of Canada, and 3,000 to 4,000 immigrants arrive in Hamilton every year. Hamilton is also home to about 5,000 international students."
Currently, the average rental price for a one-bedroom apartment in Mississauga is $1,796 per month, with two bedrooms averaging $2,142. The report predicts that in 2022, the average rent for all apartment types is forecasted to go up by 7% up to $2,265 a month.
More rent prices hikes coming in 2022
"While the ever-changing landscape makes it difficult to forecast the direction of the rental market in Canada, the overall trend appears to be one of recovery as the average rents continue to rise each month. Bullpen Research & Consulting expects this trend to continue as we close out 2021 and start 2022," the rental report concluded.
In November 2021, rents for single-family homes in Canada averaged $2,594. That's an increase of 14 percent year-over-year and up from $2,272 in November 2020. Also seeing a bounce back are townhouses. They have surpassed pre-pandemic rent prices to reach an average rental price of $2,200 in November. That's an increase of 16 percent from a year ago.
With many Canadians continuing to work at home, at least part time, they desire more space with some tenants using their ‘commuting’ money toward higher rent.
The only rental unit type nationally to see a drop year-over-year were one-bedrooms. They fell one percent in November to an average of $1,575.
“Much of the improvement in rent levels this year compared to last year is occurring in the market for larger units, and single-family products,” said the report. “With many Canadians continuing to work at home, at least part-time, they desire more space with some tenants using their ‘commuting’ money toward higher rent.”
Vancouver rents will continue to soar
Once again British Columbia was No. 1 as the most expensive province for renters with an average of $2,182 per month. That's up 1.6 percent from last quarter. Ontario was second at $2,090, an increase of 1.9 percent.
Vancouver rents are expected to rise six percent to $2,635.
“While the ever-changing landscape makes it difficult to forecast the direction of the rental market in Canada, the overall trend appears to be one of recovery as the average rents continue to rise each month,” Myers said.