The average monthly rent in June for a one bedroom apartment in Guelph is up 19 per cent year over year.
Guelph is up 16 per cent for a two bedroom apartment.
In a list of 35 Canadian cities Guelph ranked seventh most expensive for rent, according to Rentals.ca in the National Rent Report from Bullpen Research & Consulting. The statistics are based off of monthly listings on Rentals.ca.
In June, the average price of a listed apartment in Guelph was $1,996 for a one bedroom apartment and $2,271 for a two bedroom in Guelph.
Running close behind Guelph is Cambridge, the city ranked eighth on the list of most expensive cities to rent in. At $1,870 for a one bedroom apartment and $2,315 for a two bedroom in June.
Year over year, Cambridge rent for a one bedroom is up 22 per cent in June but down 3.2 per cent for a two bedroom.
The Bank of Canada raised its benchmark interest rate to 2.5 per cent on Wednesday.
“Anytime interest rates go up it reduces the amount of money that people can pay for homes based on their monthly obligations,” said Ben Myers, president of Bullpen Research & Consulting.
“Essentially that reduces demand in the ownership market. When demand goes down typically prices go down.”
The impact on the rental market is those in the rental market who were going into the ownership market will stay renting. This reduces the supply of available properties and drives up the rent prices, said Myers.
Quebec seems to be the only province where rent is more affordable and there is a greater supply of rental properties, he said.
“One of the things they have going for them, it’s just more socially acceptable to rent. It’s not the same pressure we have here to get into the ownership market,” said Myers.
Toronto is the city with the highest amount of adults living with their parents, said Myers. A whopping 47 per cent according to Statistics Canada.
The average cost of a one bedroom apartment in Toronto in June is $2,192 and $3,115 for a two bedroom.
Myers said he doesn't think rent prices will continue to rise considering the sticker shock of home prices from the last 18 to 24 months.
Overall, Vancouver is the Canadian city with the highest monthly rent at $2,936 for apartments and condos.
