Rents in big cities across Canada will continue to rise in 2020 – including in Ottawa, a recent report states.
According to the National Rent Report by Rentals.ca and Bullpen Research and Consulting, Canada’s capital will see an annual rental rate increase of four per cent this year. Other cities like Montreal will experience a five per cent increase, and seven per cent in Toronto.
“Affordability will remain a major issue in 2020,” Matt Danison, CEO of Rentals.ca, said in a press release. “We will see more short-term rental regulations, vacancy taxes, co-living developments, smaller apartment unites, telecommuting and millennials living with their parents longer.”
In Ottawa, the overall average rental rate for all property types listed on Rentals.ca was $2,032 a month last year. That average is now forecasted to creep up to $2,100 a month.
The report also found that rents and home sales will increase in secondary commuter cities like Hamilton, where residents are moving to get away to big cities to escape inflated housing prices.
More and more families will rent instead of buy, the report says, and they are choosing to live near quality schools rather than major transit hubs and other city-living conveniences.
As affordability remains top of mind for renters, Danison says developers, property managers, rental advocates and governments will need to think creatively and collaboratively to find solutions to address the high rent demand and prices.