Hamilton’s average rents keep climbing, reaching $2,110 in May: report
Published June 15, 2023 at 1:09 pm
Today’s youth could become the “Boomerang Generation” or the “Roommate Generation.”
Many members of Gen Z could be moving back in with their parents or splitting rent since living on their own has become so unaffordable, said Matt Danison, CEO of Rentals.ca Network, a website for apartment rental searches and information about the market.
“Higher rents are on the horizon with interest rates at a 22-year high, rising home prices and record immigration,” said Danison in a press release.
With a 21-year low vacancy rate in Hamilton, average rents in the city jumped 16.1 per cent in May to $2,110 for condo rentals and apartments.
Hamilton was among the mid-sized markets with the highest average asking rent at $2,110 for purpose-built and condo rental apartments in May, according to the National Rent Report by Rentals.ca and Toronto-based real estate research firm Urbanation. Among 25 municipalities, Hamilton was at the bottom of the list.
Oakville remained Canada’s most expensive midsize market in May. Its average rent was $3,373 for purpose-built and condo apartments.
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Burnaby and Coquitlam were second and third at $2,899 and $2,774, respectively.
In terms of annual change in average rent in May, Hamilton was ninth among the 25 fastest growing mid-sized markets at 16.1 per cent, according to the report.
The top 3 in that category were Scarborough, Red Deer, Alta., and Brampton, Ont., at 29.1 per cent, 25.4 per cent and 23.4 per cent, respectively.
In Hamilton, the average rent for a one-bedroom was $1,877, up 15.7 per cent year over year. It cost $2,310 for a two-bedroom, up 11.6 per cent year over year.
Rental demand to surge during summer: analyst
“The rental market is expected to heat up further as it enters the seasonal peak for demand during the summer months, driven primarily by an incoming surge in international students and continued deterioration in homeownership affordability as interest rates move higher again,” said Shaun Hildebrand, president of Urbanation, in a press release.
According to a CMHC rent report in January, Hamilton’s vacancy rate for purpose-built rental apartments was the lowest since 2002 at 1.9 per cent. The federal agency is dedicated to promoting housing affordability. Factors behind the low vacancy rate? The city had more student renters, more people with full-time jobs and fewer renters transitioning into homeownership.
Ontario topped provinces with the highest increase in average rents in May.
British Columbia remained the priciest province with average rents at $2,468. Still, its rent growth slowed to 5.2 per cent.
In May, average asking rents in Canada rose 6.5 per cent, the lowest annual increase since December 2021. Average annual rents, however, rose 19 per cent over two years ago.
Month over month, average rents in the country rose 0.6 per cent to $2,014.
The report used data from digital rental platform Rentfaster.ca. The figures represent only vacant units, so they are closer to what someone would see searching for a new place to rent, said Paul Danison, content director for Rentals.ca.
The data include single-detached homes, semi-detached homes, townhouses, condominium apartments, rental apartments and basement apartments. Outlier listings and single-room rentals are excluded.
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