Victoria rents spike at fastest rate in the country in past year

Rents are climbing faster in B.C.’s capital than anywhere else in the country.

According to the latest national rent report from Rentals.ca, average rents over all property types in Victoria jumped a Canadian high 27 per cent in July over the same month in 2021, going to $2,667 from $2,093, a figure that had increased 15 per cent from 2020.

Average rent in July for one-bedroom suites placed Victoria fifth out of the 35 cities at $2,107, (up 20 per cent from last July) while the average monthly rent of $2,836 for a two-bedroom (up 34.8 per cent) was fourth-highest in the nation.

Vancouver topped the list for average one-bedroom rents at $2,500, followed by North Vancouver ($2,411), Richmond ($2,292) and Toronto ($2,257). Vancouver’s rental rates jumped 14.4 per cent for a one-bedroom and 19.4 per cent for a two-bedroom over the past year.

Average rent for all Canadian property types listed on Rentals.ca was $1,934 in July, an increase of 10.4 per cent year over year, according to the report. Month over month, average rents rose 2.6 per cent over June.

“The 2.6-per-cent monthly increase in average rents in Canada is the second highest monthly jump in three years, topped only by the 3.8-per-cent rise in May 2022,” said Ben Myers, president of Bullpen Research & Consulting. “Rents were boosted by rent growth of 20 per cent and higher in several major municipalities in Canada, and double-digit growth in a number of the most affordable rental markets, such as Red Deer and Saskatoon.”

The July average rent in Canada is now only $20 below the pre-pandemic peak of $1,954 in September 2019. The market had fallen 14.3 per cent from the peak to $1,675 in April 2021, but has since increased by 15.5 per cent.

The report finds that workers returning to the office are boosting rents in the most expensive central markets in Canada. It cites rising interest rates for keeping would-be home sellers from listing their properties, which ultimately leads to higher demand in the rental market.

Lloydminster, Alta. had the cheapest rents of the 35 cities listed in the report, with a one-bedroom coming in at $836 and a two-bedroom at $977. Those Prairie winters are also keeping prices down in Regina and Saskatoon, with one-bedroom rents averaging $999 and $987, respectively.

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