The latest National Rent Report by Rentals.ca and Urbanation revealed that rent is up 8 per cent annually in Canada despite a slowdown in Vancouver and Toronto.
According to the report, asking rents for all residential property types in Canada averaged $2,174 in November which held close to the record high in October with a 0.2 per cent month-over-month decrease.
The report noted that the annual rate of rent growth in Canada moderated for the third consecutive month. Asking rents also increased 8.4 per cent year-over-year in November, compared to annual growth rates of 9.9 per cent in October and 11.1 per cent in September.
“Rent inflation in Canada is slowly starting to moderate, a trend being led by a notable slowdown in rents in the country’s most expensive big cities of Vancouver and Toronto. Renters are adjusting to record high housing costs by shifting into less expensive markets,” said Shaun Hildebrand, president of Urbanation.
According to the report, studio apartment rents accelerated to an annual growth rate of 12.1per cent in November, while one-bedroom apartments maintained the strongest annual rent growth at 13.6 per cent. Two-bedroom apartments saw a slowdown in annual rent growth from 11.8 per cent in October to 11.2 per cent in November, according to the report.
Alberta led in terms of annual growth during November, posting a year-over-year increase of 16.1 per cent to reach an average of $1,695. Despite having the highest average apartment rents at $2,582, British Columbia experienced a 2.2 per cent month-over-month decrease and a notable slowdown in annual growth to 6.5 per cent in November.
The report highlighted that Edmonton surpassed Calgary as the leader in rent growth among Canada’s largest markets in November, with asking rents for Edmonton apartments rising by 11.9 per cent in comparison to last year.
Vancouver and Toronto, however, experienced a sharp slowdown in rent increases. Vancouver’s average asking rents increased by 0.7 per cent annually to $3,171, while Toronto’s average apartment rents decreased for the second straight month, down 2.4 per cent to $2,913.
The report noted that Canada’s 25 most expensive small and medium-sized markets are in British Columbia, Ontario, and Quebec, with Greater Vancouver and Greater Toronto leading the top rankings. Côte Saint-Luc in Quebec remained the fastest-growing market for apartment rents in October, with a 29.4 per cent annual increase, according to the report.
Average asking rents for shared accommodations in British Columbia, Alberta, Ontario, and Quebec reached a record high of $960, growing by 16.2 per cent over the past year, according to the report. Quebec experienced the fastest growth in shared accommodation rents at 26.2 per cent, with an average of $923, including Montreal’s average of $956.