Housing prices stagnant in Oshawa but rental prices still soaring – report

Housing prices may still be on the decline but rental prices are soaring, with the average rent for all property types across Canada in August at $1,959 per month, representing an annual increase of 11.1 per cent and the highest ever tracked by Rentals.ca, topping the previous high of $1,954 in September 2019.

According to the latest report from Rentals.ca and Bullpen Research and Consulting, the latest interest rate hike from the Bank of Canada has potential buyers further dissuaded from buying, meaning even higher demand in a rental market already crowded from booming immigration, students returning to university, and workers moving back to city centres.

The average rent is up 1.3 per cent monthly, and 16.8 per cent from the recent market low of $1,676 per month in April 2021.

Nationally Oshawa came in 25th on the list for average monthly rent in August for a one-bedroom at $1,696 and for average monthly rent for a two-bedroom at $2,167.

As usual, Vancouver and Toronto led the way as the most expensive cities to rent in Canada, with Vancouver ($2,574 for a 1-bdrm, $3,694 for a 2-bdrm) holding the top spot.

Vancouver (18.8 per cent) and suburban neighbour Burnaby (21.6 per cent) are among the biggest climbers year-over-year for one-bedroom units, while Toronto (24.3 per cent) and North York (25.9 per cent) are showing some of the biggest increases for two-bedroom apartments.

Surprisingly, London is the biggest mover of them all, with a 36.9 per cent increase from 2021 for one-bedrooms and 30.4 per cent for two-bedrooms.

Oshawa’s changes are more modest. Oshawa’s rent for one-bedrooms actually declined six per cent from last month while its rates for two-bedroom units rose 8.4 per cent year-over-year.

During the pandemic, Ontario rents plummeted, with rents for two-bedroom apartments declining by 8 per cent from August 2019 to August 2020, but fast forward to August of 2022 and two-bedroom apartments spiked by 13 per cent annually, while one-bedroom apartments have increased by 8 per cent.

“With several economists calling for an extended ownership housing market correction, demand has shifted dramatically to the rental market, which is significantly undersupplied in many major Canadian municipalities,” said Ben Myers, president of Bullpen Research and Consulting.

There continues to be outsized rent growth in Canada, with the average listing on Rentals.ca nearly $200 more expensive than a year ago.