Prices are falling but rents are rising in Canada's paradoxical housing market

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An unintended consequence of falling prices is the increased pressure on rental housing, write Murtaza Haider and Stephen Moranis. Read on

Recently released data by the Toronto Regional Real Estate Board has revealed that the average rent for a one-bedroom apartment, the most common type of rental abode, increased by 20 per cent year-over-year in the second quarter of 2022. The rents for two- and three-bedroom apartments increased by 15.3 and 12.8 per cent, respectively.

Townhouses constitute the other type of housing that is popular among renters. The increase in townhouse rents was relatively lower, with two-bedroom townhouses increasing by 11 per cent over the past year. However, trends in there were not uniform, with the number of leased three-bedroom townhouses increasing by 25 per cent in the second quarter compared to a slight decline in two-bedroom rental townhouses.

Another contributing factor is teleworking, which allowed many to work remotely from home during the pandemic. As a result, some workers gave up relatively smaller yet expensive leases near central employment hubs for cheaper and larger dwellings in smaller towns. With employers calling their workers back to offices, the demand for rental properties near employment hubs has been increasing, putting pressure on rents.

 

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You will own nothing and pay hi Rent to the WEF

Well there was never a drop in rental rates. Most places are not rent controlled so.. yes. The prices will continue to go up.

Paradox? All would be home buyers are foregoing it to wait out this crash and are renting short term. The invisible hand at work.

“A long-lasting fix to Canada’s rental woes lies in a significant increase in the construction of new purpose-built rental (PBR) dwellings.” Won’t happen,there is a massive shortage of tradesmen. Thank the politicians/educators that pushed “go to college” & spat on the trades.

Thanks bankofcanada and JustinTrudeau .you guys dont know how to fix economy, just quit already.

Not a paradox at all. Rents are playing catch-up. Long ways to go

New leadership is needed. Vote Pierre!

Like they would...

Fantastic news!!

Could have something to do with rising interest rates, I dunno, just a wild guess

Thousands and thousands move to the GTA every month. They cant afford to buy so they have to rent.

shouldnt be surprising to anyone as inflation and the interest rate has ate at all their savings and so now they have to fall from a mortgage house to living in any available condos for rent. I dont know how the next generations will be able to afford a roof over their heads :(

Rents are increasing due to inflation and rising mortgage rates

Average Canadian and new immigrants just being screwed under liberal Trudeau

We havent built enough to keep up with immigration over the last 2 decades

If people can't afford to buy homes then they need to rent - increasing renter demand and prices.

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