The Canadian rental market is approaching its pre-pandemic momentum

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The Canadian rental market is approaching its pre-pandemic momentum

In the second quarter, the median rent for units listed on Rentals.ca was $1,750, a 7% year-over-year increase.

Many Canadians are struggling to find housing that fits their budget in the face of skyrocketing rents across the country. This increase is fueled, in part, by the tightening of interest rates. Higher rates have the effect of cooling the real estate market, which is putting upward pressure on the rental market.

After a marked decline in 2020 and the beginning of the x27;year 2021, rents are on the rise again.

During the second quarter, the median rent for units listed on Rentals.ca was $1750. This is 7% higher than the equivalent period in 2021.

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Listed units include single-detached homes, semi-detached homes, townhouses, condominiums, rental apartments and basement apartments.

This increase in median rent in the second quarter is part of a trend. Increases on an annual basis had also been observed during the two previous quarters.

However, rental prices across Canada have still not recovered. their pre-pandemic levels. The median rent had reached $1825 in the fourth quarter of 2019.

British Columbia has seen the largest annual increase in the average rent, at almost 25%. Meanwhile, Nova Scotia has seen double-digit increases throughout the pandemic. The Nova Scotia government attempted to introduce a new foreign homeowner tax in 2022, but ultimately backed down.

Canada Mortgage and Housing Corporation considers housing affordable if it costs less than 30% of a household's pre-tax income.

Our colleagues at CBC News did the exercise of calculating how much a household needs to earn to keep the average cost of a two-bedroom apartment below this threshold, taking into account rent and utilities.

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So in Vancouver, where the average rent for a two-bedroom apartment reached $3,597, a household would have to count on gross income of at least $150,000 to such rent is considered affordable. In Toronto, a household must earn more than $135,000.

The Consumer Price Index (CPI) also gives an idea of ​​the impact of housing on the wallets of Canadians.

The CPI measures the changes over time in the prices of goods and services such as food, clothing, transportation, health care, recreation and, of course, housing.

Although prices tend to rise over time, the cost of housing has been rising at a faster rate than other goods and services for almost 20 years.

Between 2002 and 2004, the price of other goods and services increased at a faster rate than the price of housing.

However, from By late 2004, the cost of housing began to outpace the rising cost of everything else. A trend that has continued since, with the exception of a brief period in 2005.

To alleviate housing costs, more and more Canadians the choice of living with one or more roommates.

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Shared households – which Statistics Canada defines as two or more people living together and not part of a census family – are the type fastest growing household in Canada.

Although they still represent only a small share of all Canadian households (4%), 663,835 house-share households in 2021 represent a 54% increase over 2001.

According to a CBC News text

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