Average Rents in Canada Reach A Record High

Average asking rents in Canada reached a new record high of $2,117 in August, with a monthly increase of 1.8% and an annual growth rate of 9.6% according to the Rentals.ca and Urbanation latest National Rent Report. (Pexels Photo)

Vancouver once again tops the list of 35 cities for average monthly rent. In August average monthly rent in the city for a one-bedroom home was $2,988, and average monthly rent for a two-bedroom was $3,879.  

Year over year, average monthly rent in August for a one-bedroom in Vancouver was up 13.1 per cent and up 9.5 per cent for a two-bedroom. Month over month, average rent in August for a one-bedroom home in Vancouver was down 0.8 per cent and reduced 1 per cent for a two-bedroom. 

Burnaby finished third on the list of 35 cities for average monthly rent in August for a one-bedroom home at $2,555 and for average rent for a two-bedroom home at $3,433. 

Year over year, average monthly rent in August for a one-bedroom in Burnaby was up 12.9 per cent and up 23.5 per cent for a two-bedroom.

Victoria came in 11th on the list for average monthly rent in August for a one-bedroom at $2,080 and $2,883 for a two-bedroom. 

Surrey finished 15th on the list of 35 cities for average monthly rent in August for a one-bedroom at $1,962 and for average rent for a two-bedroom at $2,550. 

Year over year, average monthly rent in August for a one-bedroom in Surrey was up 11.2 per cent and up 15.7 per cent for a two-bedroom.

Asking Rents Increase by Over $100 in Three Months

Average asking rents in Canada reached a new record high of $2,117 in August, with a monthly increase of 1.8% and an annual growth rate of 9.6% according to the Rentals.ca and Urbanation latest National Rent Report.*

Over the past three months, spanning from May to August, the Canadian rental market experienced a 5.1% increase in asking rents, equivalent to a monthly rent increase of $103.

“Unlike in the U.S., rent inflation in Canada has failed to cool down despite rental completions having reached their highest level in decades” said Shaun Hildebrand, president of Urbanation. “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 by a record pace.”

While Calgary maintained its position as the leader in rent growth among Canada’s largest cities, recording a 17.3% year-over-year increase to an average of $2,068 for purpose-built and condominium apartments, Montreal closely followed with annual growth of 16.4%, marking the first time asking rents surpassed $2,000 at $2,001. Toronto and Vancouver, the country’s most expensive cities, posted below-average annual rent increases of 8.7% and 7.3%, respectively, reaching average monthly costs of $2,898 (Toronto) and $3,316 (Vancouver). Notably, average rents in Vancouver decreased by 0.7% on a monthly basis.

Annual increases were also observed in mida-sized markets, including Brampton (ON) at 21.6% to an average of $2,713; New Westminster (BC) at 17.8% to an average of $2,511; and Côte Saint-Luc (QC) at 16.4% to an average of $2,271. In Alberta, the fastest growth in mid-sized markets occurred in Grande Prairie and Lethbridge, both at 9.3%, with average rents of $1,169 and $1,276, respectively. In Saskatchewan and Manitoba, Regina led with an annual growth rate of 10.9%, while Winnipeg posted an annual increase of 8.3%.

Studio apartments recorded the most significant month-over-month rent increase, increasing by 2.4% to an average of $1,480. One-bedroom units led the year-over-year growth at 14.8%, averaging $1,880 per month. Meanwhile, two-bedroom apartments and three-bedroom units commanded average asking rents of $2,233 and $2,448, respectively, marking annual increases of 12.3% and 10.6%.

Rents for shared accommodations, such as roommate arrangements, continued to rise. In Quebec, average asking rents for shared units grew by 24.0% annually to $888 per month, followed by Alberta with 20.5% annual growth to an average of $851. In British Columbia, average asking rents for shared accommodations increased by 17.7% annually to $1,150 per month, while roommate rents in Ontario grew by a more moderate annual pace of 7.5% to an average of $1,040.

The National Rent Report charts and analyzes monthly, quarterly and annual rates and trends in the rental market on national, provincial, and municipal levels across all listings on the Rentals.ca Network for Canada. The data from the digital rental platform Rentfaster.ca is incorporated into this report.

Rentals.ca Network data is analyzed and the report written by Urbanation, a Toronto-based real estate research firm providing in-depth market analysis and consulting services since 1981.

*The data includes single-detached homes, semi-detached homes, townhouses, condominium apartments, rental apartments and basement apartments (outlier listings are removed, as are single-room rentals.)