For the sixth month in a row, average asking rents for vacant dwellings in Canada rose to new heights, averaging $2,178 according to Rentals.ca and Urbanation’s latest National Rent Report. Since June 2023, average rents have increased by 8.8 per cent, which is equivalent to $175 per month.
In October, the annual rate of rent growth in Canada stood at 9.9 per cent, a modest slowing from the 11.1 per cent annual pace in September. However, it marked the second-fastest annual increase over the past seven months. Additionally, average asking rents experienced a 1.4 per cent month-over-month increase in October, showing somewhat slower growth than the monthly gains of 1.5 per cent in September and 1.8 per cent in August. This deceleration can be attributed to seasonal factors influencing the rental market.
“While headline rent inflation for Canada continued to run hot in October, the slowing of rents in cities such as Toronto and Vancouver was significant, showing that affordability challenges are causing renters to shift into less expensive markets,” said Shaun Hildebrand, president of Urbanation.
For the first time, two-bedroom apartment rents surpassed $2,300 in October, registering at $2,311. One-bedroom apartments experienced the fastest annual growth, with rents increasing by 14.1 per cent. With an average of $1,538, studio apartment asking rents rose by 12 per cent compared to a year ago, while three-bedroom apartment rents increased annually by 8.9 per cent to reach an average of $2,532.
Alberta, Quebec, and Nova Scotia saw concentrated rent inflation driven by strong population growth and increased supply entering the market at higher rents. Alberta experienced a 16.4 per cent year-over-year increase in asking rents, leading the provinces in growth. In Nova Scotia, average asking rents for apartments increased 13.6 per cent from a year ago to $2,097, with annual growth following close behind in Quebec at 13.3 per cent, where average asking rents reached $1,977.
For the ninth straight month, Calgary was the leader in annual rent growth for apartments in Canada’s largest cities with a 14.7 per cent annual increase. Montreal maintained the second spot with annual rent growth of 10.2 per cent, which averaged $2,046 in October. Toronto however, witnessed a year-over-year decline of 0.8 per cent in asking rents, the first annual decrease since August 2021.
B.C. maintained the top spot on the list of the most expensive small- and medium-sized markets, with North Vancouver, Coquitlam, and Richmond leading the way. Côte Saint-Luc in Quebec witnessed the highest annual growth among small- and mid-sized markets, with a staggering 36.6 per centy increase.
Listings for shared accommodations in B.C., Alberta, Ontario, and Quebec increased by 42 per cent from the previous year with average asking rents for roommate rentals growing by 19 per cent, reaching $964 per month.
For the full report, click here: November 2023 Rentals.ca Report
