The average rent price in June 2022 for all Canadian properties listed on Rentals.ca was $1,885, an increase of 9.5 per cent versus a year ago. But, as pointed out in the latest edition of the National Rent Report, that’s still 3.5 per cent lower than the pre-pandemic level of June 2019, which came in at $1,953 for all property types.
With Canada Mortgage and Housing Corporation recently suggesting that rental housing in Canada remains significantly undersupplied, rising interest rates, persistent inflation, supply chain issues, record high immigration levels and employers’ decisions about requiring in-office work are also impacting the rental market. Analysts at Bullpen Research & Consulting and Rentals.ca say they expect rents to continue to rise throughout the remainder of the year, especially with a resale housing market correction underway.
“The average rent for all property types in Canada declined slightly in June compared to a month earlier, but is up almost 10 per cent annually,” said Ben Myers, president of Bullpen Research & Consulting. “The monthly dip can be attributed to a decline in Quebec, as rents in B.C., Alberta, Ontario and Nova Scotia all experienced increases in average rent from May to June. Despite data showing that the share of employees returning to the office has stalled after a year of steady increases, average rents in Canada’s largest cities are still surging, with condominium and rental apartments seeing rents jump 26 per cent annually in Calgary, 25 per cent annually in Vancouver and 20 per cent annually in Toronto.”
Average rent, city by city
Vancouver once again topped the list of 35 cities for average monthly rent price, with one-bedroom rentals going for $2,412, and two-bedrooms for $3,597. Since a year ago, rent in June for a one-bedroom in Vancouver has shot up 19.2 per cent and a whopping 26.5 per cent for two-bedrooms.
Toronto, meanwhile, finished second on the list for average monthly rent price with one-bedrooms going for $2,192 and two-bedrooms for $3,115. Year over year, that’s an increase of 18.5 per cent and 23.4 per cent.
In 23rd spot, rent in Montreal for a one-bedroom home came in at approximately $1,525 and $1,939 for a two-bedroom, up 5.5 per cent and 2.1 per cent since last year.
London, Calgary, and Kitchener also experienced significant increases in average monthly rents in June by 29 per cent, 26 per cent and 21 per cent respectively. Overall, five cities of the 35 included in the report recorded 20 per cent (or higher) rent price increases since a year ago. While Toronto and Vancouver had the highest monthly rents in Canada, Regina had the lowest at $1,014.
Smaller units returning to favour
The narrative throughout the pandemic has been that tenants were renting larger units as they were mandated to work from home, but with the easing of COVID measures, June 2022 data shows that the trend appears to be changing. Average unit sizes for listings across all property types has increased to 909 square feet—the highest it’s been since December 2019—suggesting more large units are becoming available as the market demands shift.
For the full National Rent Report, visit: Rentals.ca July 2022 Rent Report
