According to data released on the 16th by rental analysis company Rentals.ca, the average monthly rent nationwide last month was $1,976, up 11.9% from the same period last year. This is significantly higher than the national inflation rate of 6.9%.
In the case of the west coast, it rose by a whopping 32.2% compared to last year, and Ontario, British Columbia, and Alberta rose 17.7%, 15.1%, and 132%, respectively.
“As interest rates soared, many Canadians turned away from buying homes to renting, which led to a sharp rise in rents,” said Benjamin Tal, economist at CIBC Bank. “The rental supply shortage is deepening as housing investors are shrinking after project cancellations one after another due to cost issues,” he explained.
“Also, high interest rates are another factor driving up rents because they offset the benefits of investing in condos,” he added.
As if to support this, the state-run CBC quoted a condo owner in Thornhill saying that even if the monthly rent is set at $3,000, no profit is generated, and that it is difficult to find a buyer even if considering selling for fear that tenants who cannot afford the high rent will delay paying the monthly rent. Reported.
CBC pointed out that this phenomenon is occurring not only in Toronto, but in large cities across the country.