Hamilton’s average monthly rent rises 20.5% (about $400) in April: report
Published May 16, 2023 at 2:09 pm
The demand for rental properties has been steadily increasing in Hamilton, with the average monthly rent in April swelling 20.5 per cent, or about $400, to $2,114, according to a new report.
Hamilton has the 13th priciest average rent among 25 Canadian cities and is No. 11 among 20 of Canada’s fastest growing mid-sized rental markets for April.
The figures apply to purpose-built rental properties, defined as housing built for long-term accommodation, and condo rental apartments.
In their National Rent Report, Rentals.ca and Urbanation found that the average monthly rent year-over-year in April for a one-bedroom in Hamilton was up 18 per cent and up 15.4 per cent for a two-bedroom.
Out of 35 cities in Canada, Hamilton had the 17th highest average monthly rent in April for a one-bedroom at $1,875. It’s 18th in the country for a two-bedroom at $2,262.
“As is the case for Toronto, Vancouver and many other cities, supply in Hamilton is not keeping up with demand,” Paul Danison, content director for Rentals.ca, said in a statement to inthehammer.com.
“Higher immigration rates, high interest rates keeping first-time homeowners on the sidelines and in the rental market and high inflation plays into the high demand.”
The prime factor raising rents in Hamilton was the influx of people from the Greater Toronto Area moving to Hamilton, said David Aizikov, senior data analyst at Rentals.ca, in a phone interview with inthehammer.com.
“People from the GTA move to Hamilton in search of a lower cost of living,” Aizikov explained.
Aizikov said cities like Hamilton, located along the GO train line and generally within commuting distance from the Toronto area, make it “viable to move further away” from the bigger city.
Hamilton’s vacancy rate for purpose-built apartments is 1.9 per cent, the lowest since 2002, according to the CMHC, or the Canada Mortgage and Housing Corporation.
In Canada, average asking rents leaped 20 per cent to $2,002 in April for all property types — such as multi-family, single-family, detached and semi-detached homes — which is an average increase of $340 per month, according to the Rentals.ca and Urbanation report. The pandemic low in April 2021 was $1,662.
The most expensive medium-sized market in Canada in April? Oakville topped the list with average monthly rents at $3,413.
In April, 12 medium-sized cities in Ontario saw the fastest rising rents year-over-year for apartments and condos. A key factor was high levels of immigration. That includes three cities in the GTA that topped the list: Scarborough at 31.9 percent, Brampton at 31.2 per cent and Markham at 30.3 per cent.
“Rents continued to face upward pressure across Canada during April, with the strongest growth felt in markets that see the highest levels of immigration,” said Shaun Hildebrand, president of Urbanation, a Toronto-based real estate research firm.
“Tenants that signed leases during the pandemic may be facing rent increases of 20 per cent or more if they decide to move, causing reduced turnover that is exacerbating the low supply situation.”
Average monthly rents jumped the most in Ontario at 29 per cent for condos and apartments compared to the pandemic low in April 2021, according to the report.
In Ontario, average rent increased by 16.7 per cent in April to $2,421 for purpose-built and condominium apartments.
The report incorporated data from the digital rental platform Rentfaster.ca. The data includes single-detached, semi-detached, townhouses, condominium, rental, and basement apartments. Outlier listings and single-room rentals are removed.