Rentals in Burlington remain among the highest in Canada, and still rising
Published January 18, 2023 at 12:05 pm
Burlington remains among the most expensive cities to rent a home in Canada.
According to the Rentals.ca and Urbanation latest National Rent Report, Burlington came in sixth on the list of Canadian cities for average monthly rent in December for a one-bedroom at $2,135 and eighth for average monthly rent for a two-bedroom at $2,546.
Year over year, average monthly rent in December for a one-bedroom in Burlington was up 16.1 per cent and up 9.7 per cent for a two-bedroom.
The average listed rent for all property types rose 12.2 per cent year over year in December to $2,005, an increase of $217 over the same month last year,
Average rents in Canada have exceeded $2,000 for the second straight month. The average rate of annual rent increase for 2022 was 10.9 per cent.
This follows a 1.6 per cent average annual rent decline for both 2021 and 2020, resulting in a three-year average rent increase of 2.6 per cent — below the general rate of inflation over the same time period. Reported rent increases reflect units that turned over in the market. The majority of rental units do not have an annual change in tenancy and are subject to provincial rent increase guidelines.
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The double-digit growth in rents last year can be attributed to a combination of factors, including:
- A recovery from declines experienced during the pandemic
- Record high population growth
- A large pullback in home buying
- Low vacancy rates
“The Canadian rental market had one of its strongest years ever in 2022, more than reversing any weakness experienced during the pandemic,” said Shaun Hildebrand, president of Urbanation.
“Rental demand is primarily being driven by a quickly-growing population that is finding it increasingly more difficult to afford home ownership or find suitable rental housing. Looking ahead for 2023, rents are expected to continue rising, but less heated growth can be expected as the economy slows and new rental supply rises to multi-decade highs”
More moderate rent increases, of about five per cent, are expected in 2023 as the economy and employment begin to soften following the rapid rise in interest rates and as renters face affordability constraints after rents surged to record highs last year.
Burgeoning population growth from record immigration and fewer Canadians buying homes will increase rental demand, but supply will also be more plentiful as a more than 40-year high of rental completions is expected in 2023.
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