average monthly cost of a 1 bedroom apartment

Across 11 major cities, including Vancouver, Calgary, Winnipeg and Halifax, residential construction costs were up by 19 per cent over the same period. Residential construction building costs were up by 25 per cent from 2021 to 2022 in Toronto, according to Statistics Canada. The cost of construction has been quickly rising because of higher labour, financing and material expenses such as steel and concrete. Condo developers recover their costs immediately after the building is completed and individual owners pay for their unit. But they recoup their costs over a much longer period of time, as the building fills up and renters pay the rent. Apartment-building developers shoulder the heavy upfront cost of construction just like condo builders. In the region immediately surrounding the city, the cost of renting an apartment has also climbed 13 per cent to reach $2,653 a month in the first quarter.Īnd even though the average monthly rent has soared, developers say it is not economical for them to build rental-only apartments, according to Urbanation. That is similar to prepandemic days when the city was thriving. That has reduced the number of places available to rent and pushed the apartment vacancy rate below 2 per cent. As well, many prospective homebuyers have been staying in their rentals after borrowing costs spiked when the Bank of Canada began raising interest rates to slow inflation. Rent has been rapidly rising in the Toronto region as people continue to move to the city after pandemic-related restrictions eased. “The discrepancy between what it is to afford rent versus what it is that people are able to afford is huge,” said Garima Talwar Kapoor, director of policy and research for anti-poverty foundation Maytree.

Average monthly cost of a 1 bedroom apartment