According to a recent report, annual rental rates in Canada continue to rise, although at a slower pace compared to previous years.
The report, released by the Canada Mortgage and Housing Corporation (CMHC), revealed that the average rent for a two-bedroom apartment in Canada increased by 3.9% in 2020, compared to a 6.2% increase in 2019.
Despite the slower pace, this marks the fourth consecutive year of rental rate increases in the country. The report also showed that the average rent for a one-bedroom apartment increased by 3.5% in 2020, compared to a 5.1% increase in 2019.
The CMHC attributed the rise in rental rates to a combination of factors, including strong demand for rental units, low vacancy rates, and increasing construction costs.
However, the report also noted that the COVID-19 pandemic has had an impact on the rental market, with some cities experiencing a decline in rental rates due to the economic downturn and remote work policies.
In Toronto, for example, the average rent for a two-bedroom apartment decreased by 1.2% in 2020, compared to a 6.1% increase in 2019. This can be attributed to the shift towards remote work, which has led to a decrease in demand for rental units in the city.
Despite this, Toronto still remains the most expensive city for renters in Canada, with an average rent of $1,832 for a two-bedroom apartment.
Other cities that saw a decline in rental rates include Vancouver, Montreal, and Ottawa. However, cities like Halifax, Hamilton, and Kitchener-Waterloo saw an increase in rental rates.
The CMHC report also highlighted the impact of the pandemic on rental arrears, with some tenants struggling to make rent payments due to job losses and financial difficulties. However, the report noted that government support programs, such as the Canada Emergency Rent Subsidy, have helped to mitigate the impact on both tenants and landlords.
In conclusion, while rental rates in Canada continue to rise, the pace has slowed down in 2020 due to the COVID-19 pandemic. The CMHC report also highlights the impact of the pandemic on the rental market, with some cities experiencing a decline in rental rates.
