Red Deer was one of the cheapest Canadian cities to rent an apartment in June, according to the latest National Rent Report from Rentals.ca and Bullpen Research and Consulting.
Red Deer was the third cheapest on the list for average monthly rent for a one-bedroom home at $933 and the fourth cheapest for average monthly rent for a two-bedroom at $1,075.
Thirty-five Canadian communities are included on the list.
Year-over-year, average monthly rent in Red Deer for a one-bedroom was up 7.2 per cent in June, and average monthly rent for a two-bedroom was up 11.6 per cent. Month-over-month, average rent for a one-bedroom in June was up 5.8 per cent, and average rent for a two-bedroom was up 2.2 per cent.
The average rent in Canada increased for the second month in a row, rising to $1,721 per month after six straight months of decline.
The average asking rent for all Canadian properties listed on Rentals.ca in June grew by 0.7 per cent after rising two per cent month over month in May, according to the report.
“After unprecedented declines during the pandemic, the domestic rental market is in recovery mode with many of Canada’s largest cities seeing rent growth accelerate in June,” said Ben Myers, Bullpen Research and Consulting president.
“Unit showings are picking up, vacancies are declining and tenant demand is strong again in major downtown markets. However, it still could take eight to 15 months before most markets get back to their peak rent levels from late 2019.”
As the country begins to reopen, tenant demand is expected to pick up, and further growth will continue for the rest of 2021. Canadians should expect even larger rent increases in 2022, when most COVID restrictions are lifted, offices are open, immigration is back to pre-pandemic levels and most classrooms are in session, the report said.
On a national basis, large units continue to outpace small units in terms of rent growth as many tenants anticipate working from home longer, while others expect the move to remote work is permanent.
Single-family homes have experienced the sharpest increase in average monthly rent since the start of 2021, from $2,214 per month to $2,553 per month, up 15 per cent.