A new national rent report offers dire news for Burnaby renters hoping the COVID-19 pandemic would push local prices down.
According to Rentals.ca’s and Bullpen Research & Consulting’s latest National Rent Report, Burnaby is in the top 10 at seventh for average monthly rent for a one-bedroom home in July at $1,758 and sixth for average monthly rent for a two-bedroom at $2,189. Rent for a one-bedroom in Burnaby is up 13.1 per cent year over year.
The average monthly rent for all Canadian properties listed on Rentals.ca in July was $1,771, up $1 over June but still down 8.1 percent year over year, said the report.
The $1 increase represents the first time the average rent increased on a monthly basis since September 2019, even though average asking rents nationally are still down 9.4 per cent from that market peak of $1,954 that month.
Average monthly rents for single-family homes were down 14.9 per cent year over year in July, and condominium rentals were down 11.4 per cent year over year for the month. Both at the higher end of the market have declined every month since the COVID-19 pandemic started.
But apartments at the lower end of the market experienced lower rents only in April and May. In July, apartments, which make up the majority of the listings on Rentals.ca, experienced a year-over-year increase of 5.8 per cent.
So, the rental market is recovering, but the national data for all property types will not show this recovery until the luxury rental market returns, which could take some time. Immigration needs to return, boomers need to feel comfortable moving down to rental suites, and affluent young professionals need to feel the need to be back in city centres leasing new condos.
Vancouver took over the No. 1 spot on the list of 32 Canadian cities in July for average monthly rent for a two-bedroom home at $2,797. The city finished second for average monthly rent in July for a one-bedroom at $2,004. Vancouver average monthly rent for a two-bedroom is down 9.4 per cent year over year.
Richmond finished 10th for average monthly rent for a one-bedroom home in July at $1,629 and 11th for average monthly rent for a two-bedroom at $2,050.
Victoria came in 11th for average monthly rent for a one-bedroom home in July at $1,616 and 12th for average monthly rent for a two-bedroom at $2,040. Rent for a one-bedroom in Victoria is up 9 per cent year over year.
New Westminster finished 15th for average monthly rent for a one-bedroom home in July at $1,505 and ninth for average monthly rent for a two-bedroom at $2,171.
Toronto still led the list in July for highest average monthly rent for a one-bedroom home at $2,051, but rents for a one-bedroom in the city have dropped for the fifth straight month.
On a city level, almost every major city and former municipality experienced a decline in average rents year over year for apartments and condominium rentals, except Montreal where average rents were up 11 per cent year over year in July.
“With the exception of Montreal, rental rates are flat or declining in most major metropolitan areas in Canada,” said Matt Danison, CEO of Rentals.ca. “Some tenants are looking for larger units in less affluent areas to accommodate their work-from-home needs.”
Vancouver and Toronto average rents for apartments and condominium rentals declined 8 per cent year over year to $2,239, while Calgary rents were down 9 per cent. York, Saskatoon, North York, Regina, Red Deer and Winnipeg all experienced double-digit drops from July 2019 to July 2020.
The National Rent Report charts and analyzes monthly, quarterly and annual rates and trends in the rental market on a national, provincial, and municipal level across all listings on Rentals.ca for Canada.