Rental rates for some units fell close to 10 per cent at the end of 2020 in Mississauga
Although the real estate market has remained relatively robust over the course of the COVID-19 pandemic, the lockdown has had a significant impact on rental unit prices in Mississauga.
According to Rentals.ca’s and Bullpen Research & Consulting’s latest National Rent Report, the average rent for all Canadian properties listed on Rentals.ca in December was $1,723 per month—down 7.1 per cent year over year (but the lowest rate of decline since May).
The report says that a tenant looking for a rental property in December would have saved about $130 a month on average from a year earlier.
Mississauga finished third for average monthly rent in December for a one-bedroom home at $1,816 and sixth for average monthly rent for a two-bedroom at $2,112.
Rental rates for one-bedroom units in the city were down 1.6 per cent from November 2020 and down 1 per cent for two-bedroom suites.
Year-over-year, average monthly rent in Mississauga in December for a one-bedroom was down 7.6 per cent and down 9.4 per cent for a two-bedroom.
According to the report, Vancouver overtook Toronto on the list of 35 cities for the most expensive average monthly rent in December for a one-bedroom home for the first time in two years (or since Rentals.ca and Bullpen Research & Consulting began producing the National Rent Report).
Toronto came in second with average monthly rent in December for a one-bedroom at $1,832 and a two-bedroom going for $2,416. The report says the average monthly rent in Toronto in December for a one-bedroom was down 20.4 per cent and down 17.5 per cent for a two-bedroom.
Brampton finished 13th for average monthly rent in December for a one-bedroom home at $1,535 and 16th for average monthly rent for a two-bedroom at $1,818.
Although Oakville was not included on the list, average monthly rent for a one-bedroom home in December was $1,881, and average monthly rent for a two-bedroom was $2,142. Burlington was not on the list of 35 cities, but average monthly rent for a one-bedroom home in December was $1,877, and average monthly rent for a two-bedroom was $2,061.
According to the report, the average monthly rental rate per square foot has declined 20 per cent annually in downtown Toronto, dropped 13.4 per cent in the amalgamated City of Toronto and decreased 11.3 per cent in the GTA.
In some cities, rental rates actually increased.
According to the report, cities that saw increases for apartments and condo rentals year-over-year in December include Gatineau (up 21.8 per cent), Kitchener (up 16.8 per cent), Hamilton (up 15.1 per cent), Montreal (up 5.2 per cent) and Edmonton (up 3. 5 per cent).
The report says that out of all cities in southwestern Ontario, Hamilton experienced the highest average rent growth at 24 per cent. Kitchener came in second at 17 per cent followed by London at 16 per cent and St. Catharines at 7 per cent.
The report says that condominium apartments in Canada took a big hit in average rents in 2020, falling 18.5 per cent annually to $2,009 per month from $2,465 per month in December 2019.
On the other hand, average monthly rent for apartments rose in 2020 by 8.4 per cent to $1,603. That said, that rate was typically what landlords were asking for and some had to negotiate discounts or even offer one or two months free rent or other incentives such as gift cards.
The report says that tenants will continue to enjoy a more affordable and less competitive market, as rental rates will continue to decline for the next three to four months as COVID-19 continues to impact immigration, employment, travel and foreign student enrollment in Canadian post-secondary institutions.
With fewer workers, students, new Canadians and tourists looking for condos and apartments for both short and long-term stays, supply will continue to outpace demand and bring prices down.
The report also says that, due to travel restrictions, some investors are now advertising their Airbnb units for long-term use, further saturating the condo market.
“In many markets, rents have dropped to the point where tenants can lease a suite with an additional bedroom for the same rent as they were paying last year,” said Matt Danison, CEO of Rentals.ca, in the report.
The National Rent Report charts and analyzes monthly, quarterly and annual rates and trends in the rental market on a national, provincial, and municipal level across all listings on Rentals.ca for 35 cities across Canada.
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