Rents in London grew at a slower pace in July than they did across the country, which in turn posted its slowest growth in more than two years, the latest snapshot of the Canadian rental market shows.
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The average asking rent for all types of properties in the country was $2,201 in July, a year-over-year increase of 5.9 per cent.
That’s the slowest annual pace of increase during the past 31 months, with annual growth across the country often topping 10 per cent in recent years, according to Rentals.ca, a website used by landlords to advertise their units, and Urbanization.
By comparison, London’s asking rates for all types of available units were about $150 cheaper, growing in the past year by about four per cent and sitting last month at $2,049.
That placed London as the 13th most expensive market in Canada in July, a list topped by Vancouver ($3,101) and followed by Toronto ($2,719), according to Rentals.ca.
“As we move past the peak of summer, we’ve seen very little of the uplift typically expected with the warmer months,” said David Aizikov, an analyst at Rentals.ca. “However, as the weather cools and days become shorter, rental demand typically slows, which may further slow market rent growth.”
While the slow pace of rent increase may seem to be positive news for renters looking for a new place – especially after London at one point led the country in rent growth – demand for two-bedroom apartments, the most sought-after type, continues to be high.
The average asking rent for these types of units was $2,215, a year-over-year increase of 6.7 per cent.
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Across the country, rental rates saw downward pressure during the pandemic as population growth slowed and demand weakened, leaving the average to bottom out at $1,685 in March 2021. Last month’s average makes for a roughly 31 per cent rise since then.
“Rents were effectively flat during the past three months, decreasing by just $1 at the national level from May to July,” the report said.
The federal government has been rolling out some measures to try to slow rent increases, including a cap on international student enrollments and a reduction in the number of temporary residents, while also offering more funding to build more rental housing.
Construction of new rental options, however, has been hampered by high interest rates and rising construction costs.
With Canadian Press files
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