Since late last year, the average size of units for rent in Canada has been slowly declining, from 1,010 square feet (sf) in October 2018 to 933 sf in June 2019, according to Rentals.ca’s July National Rent Report.
The report reveals that the average property listed in the second quarter of 2019 was offered for $1,910 per month, an increase of 2.1 per cent over Q1-2019.
The median rental rate jumped 2.0 per cent quarter-over-quarter at $1,800 per month.
Q1-2019 to Q2-2019 saw the share of properties for rent from approximately $1,000 to $1,750 per month decline from 42 per cent to 41 per cent from. Rentals.ca reports market share gains in the $2,500 to $3,500 and $3,500 to $4,250 rent ranges.
The luxury segment of the market — rents from $4,250 a month to $5,000 per month — remained unchanged at 1 per cent of the listings on Rentals.ca.
Despite the share of higher-rent single-family homes declining from 13 per cent to 10 per cent quarterly, the average rental rates in Canada went up.
Meanwhile, the market share captured by condominium apartments has increased from 18 per cent in Q4-2018 to 24 per cent in Q1-2019, to 27 per cent in Q2-2019.
Rentals.ca’s report states that the average condo listed for rent in the second quarter was slightly larger than the previous two quarters at 796 sf, versus 783 sf and 765 sf.
Regarding quarterly rent growth, townhouses experienced the biggest increase at 5.4 per cent, according to the report.
“Greater rent volatility is expected quarterly when the sample of transactions is smaller — townhouses accounted for just four per cent of listings on Rentals.ca from April to June,” said Rentals.ca
Single-family properties, which are comprised of single-detached and semi-detached homes, saw quarterly rent growth of 3.2 per cent from $2,661 per month in Q1-2019 to $2,746 per month in Q2-2019.
The report states that the cost to rent a bedroom on average for a Canadian tenant is approximately $1,078, an increase of 1.1 per cent monthly (lower than the growth shown in the first chart).
On a per-square-foot basis, the average property listed on Rentals.ca in June was offered at $2.51 per square foot, an increase of 2.4 per cent monthly (higher than the growth shown in the first chart).
On a provincial level, Rentals.ca says Ontario had the highest rental rates in June, with landlords seeking $2,279 per month on average for all property types, an increase of 1.6 per cent from May ($2,244).
In British Columbia, the average asking rent was $1,852 per month, an increase of 3.1 per cent month-over-month.
After two consecutive months of decline, asking rents in Alberta increased in June to $1,308 per month.
There was a noticeable jump in rents in Manitoba, which Rentals.ca attributes to the True North Real Estate Development and Bentall Green Oak Residential Services project in downtown Winnipeg.
Rental apartments in Ontario were being offered at $1,830 per month on average in Q2-2019, almost $300 more per month than British Columbia.
“The premium in Ontario over British Columbia is smaller for one-bedroom and two-bedroom units at around $250 per month,” said Rentals.ca
Data released from Statistics Canada shows that 37 per cent of condominium apartments in the Toronto Census Metropolitan Area (CMA) are not owner occupied, according to the report.
The report further states that last year Canada Mortgage & Housing Corporation (CMHC) revealed 33 per cent of condominiums in the Toronto CMA are leased, with a miniscule vacancy rate of just 0.7 per cent.
The GTA’s condominium apartments for lease continue to see rent growth, with the average rent hitting $3.10 per square foot in June 2019, up one per cent month-over-month.
On an absolute basis, average condo rents increased by 1.1 per cent to $2,392 per month, from $2,365 in the second quarter.
“When breaking down the condo rental rates by municipality in the first and second quarter, City of Toronto condo rents are virtually unchanged (old Toronto boundaries, pre-amalgamation), but all three of the major York Region municipalities experienced declines,” said Rentals.ca
The former municipalities of Scarborough, North York and Etobicoke experienced increases in condo rents quarter-over-quarter.
Rental apartments in Ottawa have not experienced much appreciation in 2019. One-bedroom rental apartments units were offered at about $1,570 per month on average in Q2-2019, two bedroom units were offered at $2,005, and three bedroom suites at $2,161.