Rental Market Challenges: Brampton Ranked 5th Most Expensive City for Renters in Canada

According to recent research conducted by real estate company Zoocasa, Brampton residents who choose to rent are spending 50 percent less on housing costs per month compared to homeowners in the city. However, despite the lower expenses for renters, Brampton secured the 5th position in Canada’s most expensive rental markets last month.

In June, the average Brampton renter paid $2,317 per month, while homeowners spent an average of $4,777 on their monthly mortgages. Brampton’s ranking placed it just behind Victoria, which had an average rent of $2,367, while Vancouver topped the charts with an average rental rate of $3,404. Toronto followed closely in second place, with an average rent of $2,937, and Mississauga secured the third spot with a rental rate of $2,592.

The demand for affordable housing continues to surge due to record population growth, which has driven up both home prices and rental rates, resulting in record-high average rent asking prices across Canada. As a consequence, Brampton’s rental market remains competitive, even with its lower housing costs for renters.

The report suggests that the trend of rising house prices and interest rates will further fuel the demand for affordable rentals. However, it also notes that the pace of home price growth in several major markets is slowing down, potentially indicating an impending decline in home prices.

During the first quarter of 2023, Brampton held the title of the single most expensive city to rent in Canada. Rental properties in Brampton had an average monthly price of $3,263, while the average mortgage payment for a $1,000,000 home amounted to $4,626 – resulting in a narrow difference of just $1,363 between renting and homeownership costs.

Despite a slight increase in the gap between monthly expenses for renters and homeowners as the year progresses, Brampton continues to be one of the most expensive cities for renting in the Greater Toronto Area. The city’s “starter homes” now command a price tag exceeding $530,000, contributing to the overall cost of living in the area.

As the real estate market continues to evolve, Brampton residents, both renters and potential homeowners, may need to closely monitor the trends to make informed decisions regarding their housing choices in this competitive market.