Rental rates see an unprecedented surge, with annual growth of 9.6 percent
In August, the average asking rents in Canada soared to a new all-time high of $2,117, marking a monthly surge of 1.8 percent and an annual growth rate of 9.6 percent, according to the latest National Rent Report from Rentals.ca and Urbanation.
Over the past three months, from May to August, the Canadian rental market experienced a substantial 5.1 percent increase in asking rents. This translates to a monthly rent surge of $103, putting added pressure on tenants’ wallets.
Shaun Hildebrand, President of Urbanation, highlighted the concerning trend, stating, “Unlike in the U.S., rent inflation in Canada has failed to cool down despite rental completions having reached their highest level in decades. This is illustrative of the severe rental housing shortage across the country and the magnitude of the impact on rental demand as the population expands at a record pace.”
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Regional Insights:
Calgary: Maintained its position as the leader in rent growth among Canada’s largest cities, with a staggering 17.3 percent year-over-year increase, bringing the average rent to $2,068 for purpose-built and condominium apartments.
Montreal: Followed closely with annual growth of 16.4 percent, marking the first time asking rents surpassed $2,000 at $2,001.
Toronto and Vancouver: Despite being the country’s most expensive cities, they posted below-average annual rent increases of 8.7 percent and 7.3 percent, respectively, reaching average monthly costs of $2,898 (Toronto) and $3,316 (Vancouver). Notably, average rents in Vancouver decreased by 0.7 percent on a monthly basis.
Mid-sized markets: Significant annual increases were observed in Brampton (ON) at 21.6 percent ($2,713 average rent), New Westminster (BC) at 17.8 percent ($2,511 average rent), and Côte Saint-Luc (QC) at 16.4 percent ($2,271 average rent).
Alberta: The fastest growth in mid-sized markets occurred in Grande Prairie and Lethbridge, both at 9.3 percent, with average rents of $1,169 and $1,276, respectively.
Saskatchewan and Manitoba: Regina led with an annual growth rate of 10.9 percent, while Winnipeg posted an annual increase of 8.3 percent.
Unit Types:
Studio apartments: Recorded the most significant month-over-month rent increase, surging by 2.4 percent to an average of $1,480.
One-bedroom units: Led the year-over-year growth at 14.8 percent, averaging $1,880 per month.
Two-bedroom apartments and three-bedroom units: Commanded average asking rents of $2,233 and $2,448, respectively, marking annual increases of 12.3 percent and 10.6 percent.
Shared accommodations:
Quebec: Average asking rents for shared units grew by 24.0 percent annually to $888 per month.
Alberta: Registered 20.5 percent annual growth to an average of $851.
British Columbia: Average asking rents for shared accommodations increased by 17.7 percent annually to $1,150 per month.
Ontario: Roommate rents grew at a more moderate annual pace of 7.5 percent to an average of $1,040.
The National Rent Report, which compiles data from the Rentals.ca Network and Rentfaster.ca, provides comprehensive insights into monthly, quarterly, and annual rental rates and trends across all listings in Canada. Urbanation, a Toronto-based real estate research firm with over four decades of experience, analyzes the data and authors the report.
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