Average asking rents in Canada hit a new high for the sixth consecutive month, averaging $2,178 according to Rentals.ca and Urbanation’s latest National Rent Report.
Average rents increased by 8.8 per cent, equivalent to $175 per month over the past six months.
According to the report, 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.
The report noted, however, that it marked the second-fastest annual increase over the past seven months. The average asking rents also experienced a 1.4 per cent month-over-month increase in October, which indicated somewhat slower growth than the monthly gains of 1.5 per cent in September and 1.8 per cent in August. According to the report, this deceleration can be attributed to seasonal factors which influence 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.
The report noted that 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, according to the report, with rents increasing by 14.1 per cent. Studio apartment asking rents rose by 12.0 per cent compared to a year ago, while three-bedroom apartment rents increased annually by 8.9 per cent.
Alberta, Quebec, and Nova Scotia all saw concentrated rent inflation, which according to the report was 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 average asking rents, leading the provinces in growth. Average asking rents for apartments in Nova Scotia increased 13.6 per cent from a year ago to $2,097, with Quebec at 13.3 per cent, where average asking rents reached $1,977.
For the ninth consecutive month, Calgary was the leader in annual rent growth for apartments in Canada’s largest cities with a 14.7 per cent annual increase, according to the report. Montreal maintained the second spot with annual rent growth of 10.2 per cent and Toronto witnessed a year-over-year decline of 0.8 per cent in asking rents, marking the first annual decrease since August 2021.
The report noted that 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 36.6 per cent increase.
In terms of listings for shared accommodations in B.C., Alberta, Ontario, and Quebec, they increased by 42 per cent from the previous year. Average asking rents for roommate rentals grew by 19 per cent, reaching $964 per month.