As the cost of rent in provinces like Ontario and British Columbia continues to drop, a new report shows prices in places like Nova Scotia are increasing as supply is not “catching up with demand.”
The national rent report from Rentals.ca and Urbanation showed the Maritime province became the highest-priced market on average, regardless of unit type, for apartments and condominiums.
Nova Scotia saw an average rental cost of $2,343 last month, compared to the previous highest province of B.C., where the average rent sat at $2,328.
“We are seeing a lot more supply come into the market. We’re seeing demand remain pretty strong,” said Giacomo Ladas with Rentals.ca. “But when we look at the supply and demand imbalance, it’s still not healthy yet. So it’s Nova Scotia being one of those few provinces that are still experiencing pretty strong rent growth because supply is not catching up with demand yet.”
He added that while Canada has seen lower immigration rates, Nova Scotia has seen a population boost resulting from inter-provincial migration, which is supporting higher rents.
But he told Global News the price tag could also depend on what you’re looking for.
The average one-bedroom, purpose-built apartment or condo in May cost about $2,053 in Nova Scotia versus $1,977 in Ontario, while a three-bedroom home in B.C. could cost $3,278 compared to $3,028 in the Maritime province.
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This is, according to Ladas, because more people in cities like Toronto and Vancouver aren’t able to afford purchasing a home, so they look for a large rental apartment or condo instead.
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Atlantic Canada isn’t the only part of the country seeing an increase in prices. Average year-over-year rent rose by 2.3 per cent in Saskatchewan to an average of $1,474 per month and 0.6 per cent in Manitoba, reaching $1,672 monthly.
Nationally, the report showed average asking monthly rents across the country were down approximately $100 from a year earlier. The average asking rent in Canada is about $2,029.
Richmond Hill, Ont., saw the largest drop in average asking rents, falling 14.3 per cent year over year. Longueil, Que., dropped by 13.3 per cent.
Toronto saw a 3.9 per cent decline in average asking rents, while Vancouver was down by 6.3 per cent.
With a weak economic backdrop, decreasing population and record apartment completions, Urbanation president Shaun Hildebrand said in a news release the market is likely to see a softer output than what is typical for the summer.
That could be a big positive for those looking to rent.
“If you’re a renter, this has been the best time that we’ve seen in quite some time,” Ladas said. “Take advantage of movement incentives, take advantage of all the supply. You have all the cards right now, but if you can wait, it’s probably going to get even better.”
—with a file from The Canadian Press
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