Average rents have fallen 9.1 per cent
December 24, 2020
Average rents across Canada have fallen 9.1 per cent as of November 2020, compared to a year earlier, but are expected to rise 3 per cent in 2021. Montreal will have the highest increase next year, according to a national survey in the National Rent Report by Bullpen Research & Consulting Inc. and Rentals.ca.
“Rents will continue trending downward in the first half of 2021 but slowly increase in the second half of the year,” Bullpen forecasts.
The average monthly rent for all Canadian properties listed on Rentals.ca in November declined to $1,743, making a 180-degree turn when compared to an increase of 9.4 per cent in November 2019.
Bullpen’s forecasts for average monthly rent for five Canadian cities from December 2020 to December 2021 follows:
Toronto: After topping out at over $2,600 per month in late 2019, the average rent in Toronto is expected to decline to $2,040 per month in December 2020—a decline of 21 per cent annually. The average rent is expected to recover slowly in the second half, finishing at $2,120 per month on average in December 2021.
Mississauga: The average rent in Mississauga is expected to top Toronto at $2,045 per month in December 2020—an 11 per cent annual decline. But rents are forecast to improve to $2,090 in December 2021—a 2 per cent year-over-year increase.
Montreal: Montreal is expected to be the top major market in Canada next year with rents rising from $1,665 per month forecast for December 2020 to $1,760 per month at the end of 2021.
Vancouver: Vancouver is expected to finish the year with average rent down 9 per cent to $2,170 per month and continue to decline in early 2021. As the vaccine rolls out and consumer confidence returns, average rents will increase 3 per cent annually in 2021 to $2,240 per month.
Calgary: The average rent in Calgary at the end of 2020 is expected to be about $1,350 per month—a 3 per cent annual decline. The forecast calls for rents to remain flat in 2021.