Gen Z could become the ‘Boomerang Generation’; the prices are too high you need to cut it!

BY SIMONE J. SMITH

“Higher rents are on the horizon with interest rates at a 22-year high, rising home prices and record immigration. Gen Z could become the ‘Boomerang Generation’ moving back in with the parents or the ‘Roommate Generation’ splitting rent as it’s unaffordable for many Canadians to pay rent on their own. Governments at all levels need to come up with creative solutions to increase housing supply.” Matt Danison, CEO of Rentals.ca Network

Last week I received the latest National Rent Report, and what I read was not only shocking, but perplexing. According to the Rentals.ca  and Urbanation latest National Rent Report, the average asking rents in Canada rose 6.5% in May, the lowest percentage annual increase since December 2021, but average rent for all property types on the Rentals.ca Network was still up 19% over the past two years.

Toronto finished second on the list of 35 cities for the highest average monthly rent in May. Can you believe that the average rent for a one-bedroom is currently at $2,538 and the average monthly rent for a two-bedroom is $3,286?

Eight other Greater Toronto Area cities and areas were on the list:

• Mississauga came in fourth on the list of 35 cities for average monthly rent in May for a one-bedroom at $2,312 and fifth for average monthly rent for a two-bedroom at $2,727.
• Vaughan finished fifth on the list for average monthly rent in May for a one-bedroom at $2,251 and eighth for average monthly rent for a two-bedroom at $2,650.
• Burlington came in sixth for average monthly rent in May for a one-bedroom at $2,244 and 10th for average monthly rent for a two-bedroom at $2,514.
• Etobicoke finished seventh on the list for average monthly rent in May for a one-bedroom at $2,240 and fourth for average monthly rent for a two-bedroom at $2,872.
• North York came in eighth for average monthly rent in May for a one-bedroom at $2,192 and sixth for average monthly rent for a two-bedroom at $2,711.
• Scarborough finished ninth on the list for average monthly rent in May for a one-bedroom at $2,125 and 11th for average monthly rent for a two-bedroom at $2,506.
• Brampton came in 14th on the list of 35 cities for average monthly rent in May for a one-bedroom at $1,969 and for average monthly rent for a two-bedroom at $2,469.
• Oshawa finished 21st on the list for average monthly rent in May for a one-bedroom at $1,836 and 23rd for average monthly rent for a two-bedroom at $2,082.
• Oakville was not included on the list, but average monthly rent in May for a one-bedroom home was $2,522, and average monthly rent for a two-bedroom was $3,656.
• Richmond Hill was also not on the list, but average monthly rent in May for a one-bedroom home was $2,059, and average monthly rent for a two-bedroom was $2,506.

Fifteen Ontario mid-sized cities and areas on a list of 25 saw the fastest rising rents year over year for condo rentals and apartments in May. Scarborough topped the list of mid-sized cities and areas with rents up 29% annually in May to an average of $2,527.

Several GTA and surrounding mid-sized markets had double-digit annual increases in May: Brampton, up 23%; North York, up 22%; Guelph, up 19%; Markham, up 18%; Hamilton, up 16%; Vaughan, up 15%; Mississauga and Burlington, both up 14.6% and Etobicoke, up 11.5%.

Oakville continued as Canada’s most expensive midsize market in May with an average rent of $3,373 for purpose-built and condominium apartments.

Ten GTA mid-sized cities and areas were in the top 14 most expensive on the list of 25, with rents ranging from $2,634 in North York to $2,527 in Burlington.

Ontario had the highest increase in average rents in May at 12.4% year over year to $2,409 for purpose-built and condominium apartments.

It is no wonder Gen Z could become the ‘Boomerang Generation’. These circumstances have made it harder for young adults to achieve financial independence and establish their own households. Are these trends going to change, or get worse? I guess only time will tell.