Apartment rent grows faster than condo rent as new supply comes online

Article content material

The Canadian rental market is exhibiting indicators of divergence, with purpose-built rental house rents accelerating extra shortly than these for condominium models.

In keeping with a report by Urbanation, which analyzes month-to-month listings from the web site Leases.ca, purpose-built models skilled a 12.7 per cent year-over-year value enhance in March, averaging $2,117. In distinction, condominium leases grew at a extra modest charge of three.9 per cent, reaching a mean of $2,321.

Article content material

The report stated that the divergence in progress charges may be attributed to elements akin to record-high condominium completions in sure markets resulting in elevated provide, limiting lease progress in that phase.

Nevertheless, Urbanation president Shaun Hildebrand stated that total rents, which elevated by 8.8 per cent to $2,181 in March, must be stabilizing.

“As inhabitants progress slows with caps on non-permanent residents and provide will increase as rental completions proceed to rise, lease progress ought to proceed to average in the direction of extra sustainable ranges,” Hildebrand stated within the report.

The report additionally highlighted regional disparities in lease traits, with Vancouver and Toronto witnessing declines in common asking rents to $2,993 and $2,782, respectively. The areas remained the most costly locations to lease in Canada regardless of the decreases.

Quebec Metropolis’s common lease progress was the quickest in Canada at 19.3 per cent, pushing rents to $1,569. Saskatoon was one other front-runner with a 15.1 per cent annual progress charge.

Shared lodging rents additionally continued their upward pattern in March, sustaining a mean above $1,000 for the fourth consecutive month. British Columbia led the way in which with record-high common rents of $1,195, adopted by Ontario at $1,089. Quebec and Alberta had common asking rents of $900 and $876, respectively.

Share this text in your social community