In August, the average rental rates in Canada achieved a fresh all-time peak at $2,117 which marked a 1.8 per cent rise within the month and an impressive 9.6 per cent year-over-year growth, as reported by the most recent National Rent Report from Rentals.ca and Urbanation.
During the preceding three months, from May to August, the Canadian rental market saw a notable surge in asking rents, totaling a 5.1 per cent increase. This translates to a monthly rent upswing 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, registering a 17.3 per cent 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 per cent. This marked the first time asking rents surpassed $2,000, reaching $2,001. Toronto and Vancouver, the country’s most expensive cities, reported below-average annual rent increases of 8.7 per cent and 7.3 per cent, respectively, resulting in average monthly costs of $2,898 (Toronto) and $3,316 (Vancouver). Notably, average rents in Vancouver decreased by 0.7 per cent on a monthly basis.
Annual increases were also observed in mid-sized markets, including Brampton (ON) at 21.6 per cent, averaging $2,713; New Westminster (BC) at 17.8 per cent, averaging $2,511; and Côte Saint-Luc (QC) at 16.4 per cent, averaging $2,271. In Alberta, the fastest growth in mid-sized markets occurred in Grande Prairie and Lethbridge, both at 9.3 per cent, with average rents of $1,169 and $1,276, respectively. In Saskatchewan and Manitoba, Regina led with an annual growth rate of 10.9 per cent, while Winnipeg posted an annual increase of 8.3 per cent.
Studio apartments recorded the most significant month-over-month rent increase, rising by 2.4 per cent to an average of $1,480. One-bedroom units led the year-over-year growth at 14.8 per cent, 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 per cent and 10.6 per cent.
Rents for shared accommodations, such as roommate arrangements, continued to rise. In Québec, average asking rents for shared units grew by 24.0 per cent annually to $888 per month, followed by Alberta with 20.5 per cent annual growth, averaging $851. In British Columbia, average asking rents for shared accommodations increased by 17.7 per cent annually to $1,150 per month, while roommate rents in Ontario grew by a more moderate annual pace of 7.5 per cent, averaging $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.