Hamilton rental rates continue to skyrocket
Rent rates in Hamilton continue to skyrocket, according to the November National Rent Report from Rentals.ca and Bullpen Research & Consulting.
The average overall monthly rent across Canada through the month of October was $2,099; up 5.5 per cent year-over-year.
Rental rates for condominiums and apartments in Hamilton increased 24.4 per cent from Oct 2018 to $1,545 in October of this year.
"Annual rent growth in Canada continues to exceed inflation," said Ben Myers, president of Bullpen Research & Consulting, "The national figures are propped up by hot markets in Ontario and BC, which are still suffering from a lack of new supply."
Hamilton finished 16th out of the 36 cities listed for average monthly rent for a one-bedroom home at $1,533 (+4.3 per cent y/y) and a two-bedroom at $1,561 (+0.5 per cent y/y).
"There has been a noticeable decline in the number of affordable properties for rent in Ontario over the past year," said Matt Danison, CEO of Rentals.ca, "And areas that have typically provided less expensive rental accommodations such as Hamilton and Scarborough are experiencing the highest rent growth."
The average monthly rent for Canadian properties in October was $1,940 per month, an increase of 5.5 per cent annually, according to the National Rent Report.
While Hamilton's rents have seen a steep increase, it's still more affordable than other urban centres in the GTA.
Rental rates in Burlington increased 13.7 per cent from Oct 2018 to $1,995 in October of this year.
Mississauga finished fourth of the 36 cities for average monthly rent for a one-bedroom home at $1,988 and eighth for average monthly rent for a two-bedroom at $2,394. Year over year average monthly rent for all property types for Mississauga rentals increased to $2,407 by the end of October.
Toronto's average monthly rent edged up slightly to $2,320 to remain the priciest city for renters for a one-bedroom home, while Vancouver had the highest rents for a two-bedroom at $2,949. Toronto finished second to Vancouver for average monthly rent for a two-bedroom at $2,930.
“Canada is really a tale of three markets,” according to the National Rent Report. “Immense strength and tight conditions in Ontario and British Columbia, flat or falling rents in Alberta and Saskatchewan, and relatively stable conditions in the remainder of the country.”
The average monthly price in Canada for rental apartments was $1,574 per month in October, up 7.7 per cent from the same month last year ($1,461).
On a provincial level, Ontario had the highest rental rates in October, with landlords seeking $2,334 per month on average (all property types), unchanged month-over-month, but rising 9.1 per cent annually from $2,139 in October of 2018.
“With near-record levels of population growth in Ontario, a lot of residents are looking for apartments, and supply hasn't kept up,” adds the report. “Through the first three quarters of 2019, there were 17,915 new apartment completions (rental and condominium tenure) in Ontario, the lowest level during the first nine months of the year since 2014.”
Hamilton's high rental market appreciation is followed closely by Scarborough at 24 per cent and London at 23.4 per cent.
The four bottom markets are all in Alberta, with Red Deer seeing rents increase by 0.3 per cent, while annual declines of 2.1 per cent, 5.1 per cent, and 8.0 per cent were experienced in Edmonton, Calgary, and Fort McMurray, respectively.