Rents post gains in April

In contrast to a national decline, London residential rents record gains in April

Photo: A rental apartment complex at 780 Wonderland Road South

ACCORDING TO THE Rentals.ca May 2021 Rent Report, residential rents is London rose in April. The gain contrasts the national trend, which saw a drop both in month-over-month rents and yearly comparisons.

The average asking rent for a one-bedroom apartment in London in April was $1,181, a 2.3 per cent gain over March asking prices, though that figure still represents a 1.4 per cent drop over April 2020 prices.

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The average asking price for a two-bedroom unit in London rose to $1,631 in April, which represents a 1.4 per cent gain over the previous month and a substantial 12.2 per cent gain from a year ago. That gain is due primarily to a number of newly constructed two-bedroom units arriving on the market.

The report, which was compiled in partnership with Toronto’s Bullpen Research and Consulting, pegs average prices nationally for two-bedroom at $1,842 in April. Two-bedroom average rents have been steadily declining nationally since reaching a peak of $1,954 in August 2019.

“The average rent in Canada declined month over month, but because of the shifting composition of national listings, this doesn’t tell the full story,” says report author, Ben Ben Myers, president of Bullpen Research and Consulting Inc. “Average rental rates increased month over month in British Columbia, Ontario, Alberta and Quebec, suggesting the market might have turned a corner with increased tenant demand.

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“House prices have risen across the country despite the pandemic, and some prospective buyers have given up their search due to the frothy market conditions.”

The report still places London among one of the most affordable national markets. London ranked 27th among 35 Canadian markets for one-bedroom rents in April and 24th for two-bedroom rents.

Vancouver tops the list, at $1,935 and $2,578, followed by Toronto, Markham, Burlington and Etobicoke as the most expensive cities in which to rent.