Toronto is No. 1, of course, with an average one bedroom renting for $2,320 (up from $2,304). But Mississauga, the second largest city in the GTA, is now fourth, up two spots from last month’s report.
It will now cost you $1,988 to rent a one-bedroom in Mississauga (in the report analyzing September rates, a one-bedroom rented for $1,907).
Brampton comes in 10th at $1,731.
The other GTA locations in the Top 10 include Etobicoke (3rd at $2,051), Oakville (6th at $1,899), Richmond Hill (7th at $1,888), Markham (8th at $1,811), and Vaughan (9th at $1811).
Scarborough registers at No. 12, where a one bedroom will cost $1,655 to rent.
Within commuting distance of Toronto, Barrie ($1,681) and Hamilton ($1,533) are also in the top 20.
With Ottawa in 13th spot, that means 12 out of 16 of the most expensive rental markets are in Ontario.
The National Rent Report charts and analyzes national, provincial and municipal monthly, quarterly and annual rental rates and market trends across all listings on Rentals.ca for Canada.
The report looks at 36 cities across the country.
Toronto’s rental apartment shortage has reached epic proportions, yet it seems to have crept up on city officials without notice until recently.
In Mississauga, Canada’s sixth largest city, the average monthly rent for all property types rose to $2,407 by the end of October. The average monthly rent for condominium and rental apartments increased 5.7 per cent year over year to $2,274.
As the city continues its drive to urbanization, Mississauga, along with Brampton, is one of the two “sizzling” housing markets in the GTA, according to the latest data released by the Toronto Real Estate Board (TREB).
Both cities, however, suffer from a severe lack of housing inventory, which also impacts the rental market.
In fact, the rental vacancy rate in Mississauga sits around 0.8 per cent. That’s far below what’s considered the healthy vacancy threshold of around three per cent.
At least 50 condos are expected to be built in Mississauga alone over the next 10 years. Plus, several ambitious waterfront developments featuring mixed-use housing are under way. Development along the Hurontario LRT is also expected to increase the housing/rental stock.
The new Rentals.ca report shows that average monthly price in Canada for rental apartments only was $1,574 per month in October. That’s up 7.7 per cent from the same month last year ($1,461).
The situation in cities like Mississauga is not expected to improve anytime soon.
“The national figures are propped up by hot markets in Ontario and BC, which are still suffering from a lack of new supply,” said Ben Myers, president of Bullpen Research & Consulting, in a written statement reported by insauga.com.
“Annual rent growth in Canada continues to exceed inflation,” said Myers, plus in Ontario, the population is growing steadily and housing supply has simply not kept pace.
Hamilton is undergoing high rental market appreciation at 24 per cent annually. Scarborough also is at 24 per cent while London is at 23 per cent.
That’s not good news for renters as Matt Danison, CEO of Rentals.ca points out. Hamilton and Scarborough, which have typically provided less expensive rental accommodations, are now “experiencing the highest rent growth.”
Danison also add that “there has been a noticeable decline in the number of affordable properties for rent in Ontario over the past year.”
However, it appears that purpose-built rental market may now poised for growth.
Some 72,000 rental units were under construction across the country in the past quarter, according to Canada Mortgage and Housing Corporation (CMHC). That’s up by more than 12,500 from a year ago, double the level of five years ago and almost five times the amount that was being built a decade ago.
In fact, more construction on rental units is happening now than over the past 30 years.