The national average rent in Canada reached $1,959 in August, topping the September 2019 peak by a few dollars according to the Rentals.ca and Bullpen Research & Consulting latest National Rent Report.

“On a national level, average rents in August topped the pre-pandemic record high from the fall of 2019, with prospective tenants looking at properties that are $200 more expensive on average than a year earlier,” said Ben Myers, president of Bullpen Research & Consulting. “With several economists calling for an extended ownership housing market correction, demand has shifted dramatically to the rental market, which is significantly undersupplied in many major Canadian municipalities. Rentals.ca pageview data suggests rental demand is up by nearly 40 per cent from last August nationwide, and 70 per cent from the locked-down August 2020 marketplace.”

In addition to interest rate hikes from the Bank of Canada dissuading Canadians from buying houses, the rental market has been further crowded by booming immigration, students returning to university,  and workers moving back to city centres.

Since last August, the national average rent has increased by 11 per cent overall, while rents have gone up by more than 20 per cent in the following five cities: London, up 26.5 per cent to $1,979; Calgary, up 24.7 per cent to $1,751; Vancouver, up 24.4 per cent to $3,184; Toronto, up 24.2 per cent to $2,694 and Hamilton, up 21 per cent to $1,961.

Toronto finished second on the list of 35 cities for average monthly rent in August for a one-bedroom at $2,329 and second for average monthly rent for a two-bedroom at $3,266. Year over year, average monthly rent in August for a one-bedroom in Toronto was up 17.1 per cent and up 24.3 per cent for a two-bedroom.

At the provincial level, British Columbia had the highest average rents for all property types at $2,578 per month in August, an annual increase of almost 24 per cent.

Nova Scotia had the second highest average rents at $2,380 in August with a year-over-year increase of over 43 per cent. Ontario was close behind with August average rents at $2,367, an annual increase of almost 16 per cent.

Quebec average rents were $1,732 in August, up 6.3 annually, while Alberta average rents rose almost 12 per cent year over year in August to $1,349. Saskatchewan average annual rents also rose almost 12 per cent in August to $1,01.

Manitoba average rents were virtually unchanged in August, up 0.8 per cent to $1,396.

Other key takeaways:  

• The total number of listings on Rentals.ca is higher than one year ago, with the average listing getting 38 per cent more pageviews, suggesting there is significantly more demand.
• The average rent for condo rentals increased dramatically this August in Vancouver, up $1,319 a month to $3,651 and up from $2,332 in August 2021
• In Toronto condo rents have gone up $892 a month to $2,945 from $2,053.
• The national average rent for single-family homes in August was $3,061 per month, up 13 per cent over August 2021.
• Rents for the largest units in the market continue to see higher annual appreciation than smaller suites. It is possible more upper-middle class renters are in the market than in previous years because so many Canadians have been shut out of home ownership with higher interest rates.
• Ontario experienced strong rent growth in 2019, but during the pandemic, rents in the province plummeted, Rents for two-bedroom apartments in Ontario declined by 8 per cent from August 2019 to August 2020. Fast forward to this August, two-bedroom apartments in Ontario have increased by 13 per cent annually, while one-bedroom apartments have increased by 8 per cent. One-bedroom rental apartments have a lower rent in Ontario in August ($1,956 per month), in comparison to three year earlier ($2,052 per month).

For the full rent report, click here: Rentals.ca September 2022 Rent Report