Rental rates starting to climb ever-so-slightly again in Mississauga
For the first time in a long time, rental rates appear to be climbing—albeit not by a lot—in Canada, with rates also ticking back up ever-so-slightly in Mississauga.
According to Rentals.ca’s and Bullpen Research & Consulting’s latest National Rent Report, the average monthly rent for all Canadian properties listed on Rentals.ca in July was $1,771, up $1 over June but still down 8.1 per cent year over year.
Mississauga came in fourth for average monthly rent for a one-bedroom at $1,905 and seventh for average monthly rent for a two-bedroom at $2,177. The report says that average monthly rent for apartments and condominium rentals was $2,087 in July—down 3 per cent year-over-year.
According to the report, the rates for one-bedroom apartments are up 0.5 per cent month-over-month, but down 1.4 per cent from this time last year. The rates for two-bedroom apartments have climbed 1.6 per cent since last month, but have dropped 2.4 per cent year-over-year.
Nearby Brampton finished ninth for average monthly rent for a one-bedroom home in July at $1,632 and 15th for average monthly rent for a two-bedroom at $1,958.
The report says the small $1 increase across Canada actually marks the first time the average rent increased on a monthly basis since September 2019, even though average asking rents nationally are still down 9.4 per cent from the peak of $1,954 that month.
Interestingly enough, the report notes that downtown Toronto has become less valued by tenants, as average rents in the downtown core have dropped as much as 22 per cent annually.
“With the exception of Montreal, rental rates are flat or declining in most major metropolitan areas in Canada,” said Matt Danison, CEO of Rentals.ca, in the report.
The report says that rental rates have declined across all housing types, with rents for single-family homes dropping 14.9 per cent year-over-year in July and condominium rents falling 11.4 per cent year-over-year. That said, the report notes that more affordable apartments are seeing a recovery after seeing lower rents in April and May. In July, apartments experienced a year-over-year increase of 5.8 per cent.
The report says that while the rental market is recovering, national data for all property types won't reflect the change until the luxury rental market returns—something it says could take "some time."
In order for the market to fully recover, a few things need to happen.
The report says that first, immigration—severely impacted by COVID-19-related restrictions—must resume more fulsomely. The report also says that boomers need to feel comfortable moving into rental suites and young professionals need to want to lease condos in downtown areas.
As for what's hurting urban areas, the report notes that COVID-19 forced people to shift their priorities, as cities generally boast smaller units and, due to the lockdown, couldn't make up for it with arts, culture, food and entertainment. While the city is less desirable now, the report says that tenants can always return once their current leases are up.
“This pandemic has Canadians rethinking their housing needs. For many tenants their home has gone from simply a place to rest their head, to their home office and day-care space,” said Ben Myers, president of Bullpen Research & Consulting, in the report.
“The proximity to work and their daily commute has been a major factor in Torontonians’ decisions about where to live, but clearly not in the short term, as a significant portion of employees work from home. The Rentals.ca data is clearly showing that there is less demand for the more expensive downtown core condos for rent in Toronto.”
The report says the suburban markets of Mississauga, Vaughan, Richmond Hill, Markham and Pickering have fallen from $2,367 per month in November 2019 to $2,226 in July 2020, a 6 per cent drop.
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 Canada.
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