With 2020 underway, a new report has broken down the key rental market predictions for the next year.
One of the major predictions from the report, which was prepared by rentals.ca, is that rent will continue to rise in major metropolitan areas throughout Canada in 2020, with average rental rates expected to increase to 3% year-over-year on a national basis.
Experts also predict that in 2020 rental markets in and around schools will experience very strong growth.
The report revealed that 2019 was a strong year for developers and property managers as demand for rental units was strong across the country, with a peak in popularity in the third quarter, according to Local Logic in Montreal, which contributed to the report.
“In 2019, online rental activity shows rental listings are increasingly more in demand compared to for-sale properties, and we expect that to continue into 2020,” says Vincent-Charles Hodder, CEO of Local Logic.
One key contributor to this was a shift in lifestyle demands of renters, as more families turned to rent rather than owning. Local Logic said it tracked shifting lifestyle demands of renters and found that more families are renting rather than owning, which “has led to a larger number of more diverse rentals available on the market.”
“As more families continue to rent as opposed to buy, we see renters for larger homes are willing to sacrifice their ability to take transit or walk to get their groceries in favour of being located near a quality school,” says Hodder.
He added that he expects the rental markets to perform “very strongly” in areas close to schools in 2020.
Local Logic prepared a series of charts that look at Canadian renters’ interests, which includes living in proximity to things like schools, transit, grocery stores, nightlife, restaurants, and parks.
The big takeaway is that the larger the size of the rental, the greater interest a renter has in living closer to a school. For example, those living in a 1-bedroom have a 24.7% interest in living near a school, compared to those renting a 5-bedroom, who have a 56.7% interest. That said, for every size rental — from 1-bedroom through to 5-bedroom — proximity to a school was the number one factor for potential renters.
You can find the full national report here.