Vaughan and Richmond Hill tenants among those paying highest rents, National Rent Report shows

'The rental market is expected to heat up further,' expert says

Yorkregion.com
June 14, 2023
Lisa Queen

If you’re a tenant, you’re already aware of how tough it is to find an affordable apartment.

And tenants in two York Region communities are among those paying the heftiest rents, according to the latest National Rent Report.

The amount Canadian landlords are asking for rent increased year-over-year by an average of 6.5 per cent in May, with actual rents inching up 0.6 per cent monthly to $2,014.

Average rent for all property types on the rentals.ca network was up 19 per cent over the past two years.

Vaughan finished fifth on the list of 35 cities for average monthly rent in May, coming in at $2,251 for a one-bedroom, and eighth for average monthly rent at $2,650 for a two-bedroom.

Richmond Hill was not on the list, but average monthly rent in May for a one-bedroom home was $2,059, and average monthly rent for a two-bedroom was $2,506.

Several GTA and surrounding mid-sized markets had double-digit annual increases in May: Brampton up 23 per cent, North York up 22 per cent, Guelph up 19 per cent, Markham up 18 per cent, Hamilton up 16 per cent, Vaughan up 15 per cent, Mississauga and Burlington up 14.6 per cent, and Etobicoke up 11.5 per cent.

Ontario had the highest increase in average rents in May at 12.4 per cent year-over-year, to $2,409 for purpose-built and condominium apartments.

“Higher rents are on the horizon with interest rates at a 22-year high, rising home prices and record immigration,” Matt Danison, CEO of the Rentals.ca network, said.

“Gen Z could become the ‘boomerang generation,’ moving back in with the parents or the ‘roommate generation,’ splitting rent as it's unaffordable for many Canadians to pay rent on their own. Governments at all levels need to come up with creative solutions to increase housing supply.”

Shaun Hildebrand, president of Urbanation, agreed.

“The rental market is expected to heat up further as it enters the seasonal peak for demand during the summer months, driven primarily by an incoming surge in international students and continued deterioration in home ownership affordability as interest rates move higher again,” Hildebrand said.