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Housing

Rental Prices in Smaller Canadian Cities Surpass Pre-Pandemic Levels

Strategic Insights

— 1 min read

Rental prices in smaller urban centers have reached unprecedented levels, nearing those seen in the country's most expensive real estate markets. According to a recent report by Statistics Canada and Canada Mortgage and Housing Corp., the average asking rent for an individual room in Kamloops, Guelph, and other smaller cities has climbed to over $800 a month. This significant increase is attributed to the pre-pandemic market trend, where rental rates have been on the rise since 2019. The report highlights the need for a deeper understanding of the country's housing market, with a focus on the current rental rates and the impact of the pandemic on the industry.

Key Takeaways:

  • The average asking rent for an individual room in Kamloops, Guelph, and Halifax has increased by 47.5%, 36.7%, and 40% respectively from 2019 levels.
  • The average asking rent for a room in Canada's most expensive real estate markets (Vancouver and Toronto) is $1,070 and $840, respectively.
  • The quarterly report by Statscan and CMHC shows that the trend in the rental market is similar to the home ownership market, where property prices have risen at a faster pace in relatively more affordable regions.
  • In Sherbrooke, the average asking rent for a two-bedroom housing unit was $1,250 in the first quarter of this year compared to $660 in the same period in 2019.
  • Over the past year, rental rates have been on the decline, in part owing to the COVID-19 pandemic.
  • Of the 42 areas surveyed, the majority had two-bedroom units near or above $2,000 a month, including Kelowna and Nanaimo in B.C. along with Kitchener, Hamilton, Barrie, and Oshawa in Ontario.

Statistics:

  • Average asking rent for an individual room in Kamloops: $870 (up 47.5% from $590 in 2019)
  • Average asking rent for an individual room in Guelph: $820 (up 36.7% from $600 in 2019)
  • Average asking rent for a room in Vancouver: $1,070
  • Average asking rent for a room in Toronto: $840
  • Average asking rent for a two-bedroom housing unit in Sherbrooke: $1,250 (up 88.6% from $660 in 2019)
  • Average asking rent for a two-bedroom housing unit in St. John's: $1,630 (up 81.1% from $900 in 2019)

Sources:

  • Statistics Canada and Canada Mortgage and Housing Corp. report (no date provided)
  • Globe and Mail article (no date provided)
  • Canadian Housing Statistics Program (no date provided)
  • CMHC report (no date provided)

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