Canadian Rental Grow December 2022
According to Rentals.ca, for Canadian cities with populations over 1 million, average rents increased fastest for the most expensive cities, with Vancouver and Toronto rents up 24.3% and 23.7%, respectively. Calgary being the #25 most expensive city in Canada, represented the third fastest growing rental market among, posting annual growth of 21.9%.
One-bedroom rents averaged $2,661 in Vancouver, $2,551 in Toronto, and $1,572 in Calgary, while two-bedroom rents averaged $3,707 in Vancouver, $3,363 in Toronto and $1,978 in Calgary.
Other major cities like Ottawa, Edmonton and Montreal did experience strong growth, but nowhere close to the other cities.
IMPLICATIONS FOR INVESTORS
Higher rental rates will help to offset the higher interest rates right now.
Rents tend to sticky and it's unlikely that they will come down when interest rates come down
Buying pre-construction gives you the best opportunity to achieve cash-flow positive properties because rental rates to continue to grow as the property is being and interest rates are likely to be lower than today once you take possession in a few years
