Photo: Flickr / Charleston's TheDigitel

According to a new report, millennials and all other generations currently renting properties can effectively forget the days of cheap rental costs. Rising rental costs are only part of the financial hurdle that the millennial generation now have to deal with, even though salaries have effectively remained par with inflation rates.

According to an aggregator website that tracks rental costs all across the country, it is incredibly difficult, if not impossible, to find a property for rent for less than one thousand dollars in most major metropolitan areas in Canada. The city with the highest rent costs for all types of housing in the country is Vancouver, where an average one bedroom home rental goes for $1,990 monthly, with a two bedroom home going for up to $3,200. Toronto follows hot on its heels at $1,850 for the same type of property. When it comes to price inflation, Vancouver’s rental costs have risen more than thirteen percent, while in Toronto, that figure reached nearly nine percent compared to last year’s rental costs. Certainly, given that Toronto and Vancouver are the country’s hottest housing markets, rentals costs can only meet such demanding trends.

However, similar stories exist even in smaller cities all across the country, as rental prices continue to grow close to unaffordable levels. Within the Greater Toronto Area as well as Metro Vancouver, many of the smaller cities within their suburban areas have seen rental costs rise at similar levels as their metropolitan hearts. Perhaps most surprisingly has been heavy rental cost inflation in cities outside of the Greater Toronto Area. For example, the small city of Barrie, despite having a population of just over 135,000 people, has seen the highest rental cost rise in Ontario despite its size, with rental costs rising by over fifteen percent to $1,210 dollars for a single bedroom unit. A similar case study is Kitchener, where costs rose nearly eleven and a half percent compared to last year.

Additionally, some cities have also seen rental prices decrease as a result of local economic factors. For example, Edmonton and Saskatoon’s average rental costs have gone down nearly five and a half percent, with Calgary dropping four and half percent to an average of $860 for a one-bedroom rental. Given that these cities are heavily reliant on the economic growth provided by the oil industry, poor economic performance in this sector means that rental rates are determined by how well the local economy is doing. 

Published Date: Sep 26 2017