Mississauga is One of the Most Expensive Cities for Rentals in Canada
Mississauga's rental market is one of the most challenging for buyers to navigate. With prices inching upwards, it is the second most expensive city for renters in all of Canada.
It's also one where rental housing inventory is perilously low, sitting at 0.8 per cent (a healthy market has three per cent or more).
While the city is working to welcome more purpose-built rental developments (one is planned for the Sheridan neighbourhood and another is being constructed in Cooksville), it's still difficult for residents to find rental accomodations—and the prices are not easy to grapple with.
Recent data finds the average and median rents for all property types in Canada have risen in each of the last three months, as demand has increased before the prime spring leasing season, according to the March national rent report from Rentals.ca and Bullpen Research & Consulting.
In February, the average property listing on Rentals.ca was priced at $1,888 per month in Canada overall, an increase of 1.8 per cent monthly from $1,854 in January. The median rent was $1,800 per month, up from $1,747 in January.
You can see an infographic, courtesy of Rentals.ca, below:
According to Rentals.ca, the average monthly rent in Mississauga is $1,922 for a one-bedroom apartment. Tenants looking for two bedroom units can expect to pay $2,268. Rental units in Mississauga are only slightly more affordable than those found in Toronto, where a one bedroom costs $2,234 per month and a two bedroom costs $2,651.
Rent is also expensive in nearby Brampton, where a one bedroom costs $1,634 and a two bedroom runs tenants $1,728.
As for what the rental market in Canada looks like, a chart created by Rentals.ca shows the average and median rent levels by bedroom type for all property types in Canada in February.
Rentals.ca says landlords were asking $1,295 per month for studio units on average in Canada, an increase of 4.5 per cent monthly from January ($1,239). One-bedroom units were offered at $1,717 per month on average in February, 4.6 per cent higher than January ($1,642), while two rental bedroom units were offered at $1,905 per month on average, up 3 per cent from January ($1,850).
Nearly 65 per cent of all pageviews on Rentals.ca in February were for rental apartments. The average rental apartment in Canada was listed at just over $1,500 per month, with an average size of 849 square feet (although unit sizes are not available for all listings).
At just over 15 per cent of the pageviews, condominium apartments were the second most popular unit type on Rentals.ca in February.
Rentals.ca says condos are typically more expensive, with landlords asking $2,430 per month on average for condos in Canada. This is interesting when you think about the fact that condo units are typically smaller than the older rental apartments. In fact, condos average about 758 square feet.
As expected, condos are most often leased in Toronto, which contributes to the high national rental rate for smaller product.
The report says luxury rental market in Canada — units at $3,000 a month or greater — accounted for 9 per cent of listings on Rentals.ca in February.
The bulk of the rental listings (48 per cent) were available from $1,000 to $1,999 per month. For two-bedroom units, 51 per cent of listings range from $1,000 to $1,999 per month, while 30 per cent range from $2,000 to $2,999 per month.
As can be expected, Ontario had the highest rental rates in February.
According to the report, Ontario landlords are seeking $2,197 per month on average (all property types), an increase of 1.5 per cent from January ($2,164).
What's interesting is the fact that Ontario actually boasts some pretty big rental units. Rentals.ca says Ontario has the largest unit size at 906 square feet, narrowly topping Manitoba at 904 square feet. Quebec is in third, with an average unit size of 846 square feet.
So, what are condo rents like from city to city?
Rentals.ca says the above chart looks only at condominium apartments, showing the average rent per-square-foot (top) and average monthly rent (bottom). Landlords are now asking $3.81 per square foot for Toronto condos, well ahead of Vancouver at $3.52 per square foot.
Two of the least expensive markets to rent a condo apartment are Saskatoon at $1.46 per square foot and Gatineau at $1.30 per square foot.
So, what's driving rental prices?
The report says a combination of factors has contributed to the increase in rental demand: Rising resale condo prices, tighter mortgage credit availability, expanded rent control reducing turnover, and high population growth.
Rentals.ca says it continues to expect rent growth in Canada, and especially Toronto, for the remainder of 2019.