Windsor rent prices lowest in province

It may not seem like much of a bargain for those on the hunt for a place to live, but Windsor has the lowest average rents among Ontario's 15 largest municipalities.

And it's still among the cheapest cities in Canada to find rental accommodation, according to the most recent report by apartment rental agency Rentals.ca.

The average rent in Windsor in February was $1,725, which represents an increase of 1.6 per cent over the past 12 months. Looking back over the past three months, the average local monthly rent has dropped $16.

But those in the local real estate industry warn Windsor's prices may soon be playing catch-up.

“Windsor is often delayed in reflecting what is happening in the rest of the country,” said Dan Gemus, founder of the Dan Gemus Real Estate Team. “The rental market is tight and we're feeling activity in the sales market is picking up. “Rental prices won't continue to hold. We continue to have a lack of inventory.”

Rents rose 10.5 per cent across the nation in the past year, bringing the national monthly average to $2,146 and the provincial average to $2,431. The average price for a studio apartment/condo in Windsor was $1,330 while a one-bedroom was $1,556, a two-bedroom $1,926 and a three-bedroom unit was $2,027.

Gemus said there is already a shift occurring within the local rental market as the cost of a studio unit, which exists in the smallest numbers in Windsor, rose the most over the past year (15.3 per cent).

The national average increase for a studio in the past 12 months was 14.8 per cent while one-bedroom apartments rose 13.4 per cent, two-bedroom units went up 11.7 per cent and three-bedroom units rose 9.9 per cent.

Compared to a year ago, average Windsor rents for one-bedroom units declined 2.2 per cent, while two-bedroom units rose 3.8 per cent and three-bedroom residences dipped 2.3 per cent.

“Naturally, people want as much space as they can get, but when rent goes from $800 per month to $1,500 it's getting expensive,” Gemus said. “Instead of renting a three-bedroom or two-bedroom unit, people are forgoing the extra bedroom. It's coming down to affordability.”

And the search for affordability has resulted in a 72-per-cent surge over the last year in the number of listings of rooms — not apartments or suites — for rent in Ontario, B.C., Alberta and Quebec, according to Rentals.ca.

The average cost to rent a room in Ontario is $1,099 per month, an increase of nine per cent.

“It's another sign that points to the economics of housing,” Manor Realty general manager Rob Agnew said. “Some people can't afford a studio and can only afford a room.

“The whole thing points at renters not being able to sustain the current rents they're paying.

They're moving down to keep a roof over their heads.” Agnew added the inflationary costs of food, utilities and other necessities can't be overlooked in people making difficult housing choices.

Of the 15 provincial cities in the survey, only Windsor and St. Catharines ($1,835) had average monthly rents under $2,000. London saw rents rise by an average of 2.7 per cent over the last 12 months to $2,052.

Toronto was the most expensive in Ontario with a monthly average of $2,803 while Vancouver led the nation at $3,017.

Agnew noted the stability of local rents has been aided by some renters opting to buy a home. Five-year, fixed mortgages can be secured at around five per cent and that has prompted an uptick in sale activity in the past six weeks.

“I think some renters are seeing home prices going up and are deciding to jump in before they get too high,” Agnew said. “That helps take some pressure off the rental market.

“Demand is still high and it's going to get higher with the battery plant and the feeder plants getting closer.”