Average rent in Hamilton on the rise as market shows signs of recovery: Report
Published June 17, 2021 at 8:12 am
A new report has ranked Hamilton 24th out of 35 Canadian cities for average monthly rent in May for a one-bedroom home and 17th for a two-bedroom home even as rising rates indicate the market is starting to recover.
According to Rentals.ca’s and Bullpen Research & Consulting’s latest National Rent Report, the average asking rent for all Canadian properties in May grew by two per cent month over month to $1,708 — the first increase after six straight months of declines.
After a year of rental rate declines because of COVID-19-related lockdowns, the Canadian rental market is starting to show signs of recovery, the report said, as the average monthly rental rate experienced its first month-over-month increase since October of last year.
With the promise of the border opening to further immigration, international students and tourism, rental rates are expected to continue to rise and it’s felt that the fall of 2021 could be a busy season for landlords and tenants.
“Data in May showed the first definite sign of a market turnaround, as COVID-19 has had a major impact on rental rates, sending them plunging, especially in the downtown core areas of Canada’s largest cities,” said Ben Myers, president of Bullpen Research & Consulting, in the report.
“The ramp-up in the vaccine rollout and anticipated return to normalcy has tenants trying to get in before rents trend up, increasing demand for all product and bedroom types in May.”
Demand for larger units has not dissipated, the report notes, as the average monthly rental rates for single-family homes continues to rise — increasing from $2,214 in January to $2,608 in May, a rise of 18 per cent in that time span. Anecdotal evidence shows bidding wars, and tenants renting homes sight unseen.
Month over month, average rents in Hamilton were up 2.5 per cent for a one-bedroom at $1,440 in May and 1.2 per cent for a two-bedroom at $1,885.
Hamilton’s average rent was up 3.3 per cent monthly for condo rentals and apartments in May.
Toronto finished second on the list for average monthly rent in May for a one-bedroom home at $1,833 and for a two-bedroom at $2,455.
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