Rising interest rates driving up cost to rent in Oakville and Burlington

As interest rates continue to rise, so too does the cost of rental properties in Burlington and Oakville.

Average asking rents in Canada hit a record high of $2,042 in June, surpassing the November record of $2,024, according to the Rentals.ca and Urbanation latest National Rent Report.

Average rents for all property types in Canada on the Rentals.ca network have increased 20 per cent over the last two years.

Average rents were up 1.4 per cent from May to June, representing the largest month-over-month rise this year, while annually average rents increased 7.5 per cent.

“Rent inflation re-accelerated in June as the Canadian rental market entered into the busy summer season, with each of the country’s largest cities positing double-digit annual increases,” said Shaun Hildebrand, president of Urbanation.

“It’s no coincidence that cities with the fastest population growth are at the top of the list for rent increases. Expect further upward pressure on rents in the near-term as the market moves through its peak period of the year and demand continues to strongly outstrip new supply.”

In Burlington, the average monthly rent in June for a one-bedroom home was $2,215 and average monthly rent for a two-bedroom was $2,575. Year over year, average monthly rent in June for a one-bedroom in Burlington was up 8.8 per cent and up 7.7 per cent for a two-bedroom.

In Oakville, average monthly rent in June for a one-bedroom home was $2,528, and average monthly rent for a two-bedroom was $3,507.

Expect average rents to continue their upward trend with rising immigration and population now above 40 million in Canada, and another Bank of Canada interest rate hike July 12 of 25 points to 5 per cent. This will make it even harder on home buyers.