Higher rents on existing tenants have contributed 3.1 percentage points to the latest overall increase, RBC said, with the average rent paid for a two-bedroom apartment still increasing by 5.1% over the whole of last year.
That signals a mixed picture for would-be first-time buyers. Renters who decide to move will probably find a better deal – particularly in Toronto and Vancouver – but those who remain in place might not see their savings potential change significantly.
Specifically in Ontario, though, another factor could keep rental prices in check: a pivot by the provincial government into the conversion of unused condo units to rental apartments.
Towards the end of March, the Ontario government said it was ringfencing $300 million through the Building Ontario Fund to transform around 2,200 condos into long-term rental housing, with about 550 of those homes capping rents at 30% of the median household income in the Greater Toronto Area (GTA) or 25% below market rates, whichever is lower.
That’s a significant step, according to Lang. She doesn’t see rents cratering or soaring again in the immediate term – but believes the picture will generally appear favourable for renters, and somewhat bleak for investors, for the foreseeable future.