Average rent in Canada hits new records in October
Rental prices in Canada have reached a new high with the average asking price reaching $2,149 per month, according to a new report by a Canadian rental listings website.
According to Rentals.ca and real estate research firm Urbanation, the Canadian market continued its upward trajectory with data indicating a 1.5 per cent monthly increase from August, and an 11.1 per cent year-over-year increase.
It saw double-digit growth year-on-year, with the annual rate of rent inflation rising to its highest level in nine months, the report said.
The report’s metrics are based on new listings, not what current renters pay monthly.
In terms of rental types, one-bedroom units recorded the fastest annual growth in asking rents, rising 15.5 percent, to an average of $1,905.
Two-bedroom apartments averaged $2,268, representing a 13.1 percent increase year over year, while three-bedroom units were up 11.4 percent, averaging $2,514.
Studios, which represent the most economical option, had the lowest year-over-year growth with an increase of 11.3 percent, with an average of $1,511 in rental prices.
Average asking rents for purpose-built apartments and condos hit a record high of $2,078 in September, up 1.6 per cent month-on-month and 13.3 per cent year-on-year.
Nova Scotia and Alberta lead rental growth
Breaking down the data by region, Nova Scotia and Alberta led the provinces in rent growth for both purpose-built apartments and condos in September, at rates of 15.4 per cent and 15.3 per cent, respectively.
Nova Scotia outperformed Alberta with average asking rents for apartments reaching $2,088, while Alberta rose to $1,663.
Quebec had the third-fastest annual growth at 13 per cent, closely followed by British Columbia at 12.3 per cent.
Despite having one of the highest year-over-year growth rates, asking rents in Quebec remained below the national average at $1,970, while British Columbia achieved the highest average among all provinces at $2,656.
In Ontario, the annual growth rate slowed from 9.9 per cent in August to 6.6 per cent in September. Asking rents in the county also decreased by 0.4 percent month over month. However, despite this glimpse of financial hope, Ontario still has the second highest median rent by province at $2,486.
The prairie provinces remained the most financially favorable locations, with Saskatchewan and Manitoba seeing the slowest annual rent growth in September at 3.8 per cent and 3.1 per cent, respectively.
Average asking rents in Saskatchewan were $1,115 and $1,431 in Manitoba.
Toronto’s rental market slows, Vancouver grows
While most major markets across Canada saw strong rent increases, there was a noticeable slowdown in Toronto compared to August. Rent growth in Canada’s most populous city slowed from 8.7 per cent to 2.3 per cent, making it the slowest annual rate increase in two years.
Although average rental prices on a monthly basis in Toronto have not changed significantly, this city still has the second highest asking rate at $2,902. Right behind Vancouver at an average of $3,339, which represents a 7.7 per cent increase year over year.
Among Canada’s largest markets, Calgary maintained its lead for year-over-year growth as asking rental prices reached an average of $2,091, or a 14.3 per cent increase, in September.
Montreal also saw a 10.2 per cent rent increase, raising the average asking rent price to $2,030.
When it comes to the country’s medium and small markets, there was also significant year-on-year growth in rents for purpose-built apartments and residential rentals in September.
Richmond, British Columbia, part of Greater Vancouver, had the strongest growth at 28.9 per cent, followed by Côte Saint-Luc, Que., part of Greater Montreal, at 27.5 per cent and Red Deer, Alta., at 21.8 per cent.
In Ontario, Oakville had the fastest annual growth at 19.4 per cent.
In the smaller provinces, Halifax and Regina had one of the highest increases at 15.5 per cent and 13.4 per cent, respectively.
In terms of prices, four of the five most expensive mid-sized markets in Canada are located in Greater Vancouver, according to report data. The average asking rent in North Vancouver is $3,481, followed by Burnaby at $3,062, Coquitlam at $2,976, and Richmond at $2,940.
Outside of Toronto, Ontario’s most expensive markets include Oakville, with an average of $2,960, Brampton ($2,704), Vaughan ($2,697), Mississauga ($2,687), Etobicoke ($2,634), and North York ($2,629).
Room rents continue to rise
According to the rental report, renting out their rooms is becoming more popular. Over the past three months, there has been a 27 percent increase compared to last year.
This trend was particularly evident in British Columbia and Ontario, where shared residence listings increased by 40 and 78 per cent, respectively.
Average asking rents for shared housing rose 18 percent year over year in September, to $944 per month. Vancouver had the highest average asking rent at $1,590, while Toronto had $1,308.