Average rent prices in Canada reach record highs in October 2023, report says
Rental prices in Canada have reached a new high with an average asking price of $2,149 per month, according to a new report compiled by a Canadian rental listing website.
According to Rentals.ca and real estate research firm Urbanation, the Canadian market continued its upward trajectory with data suggesting a monthly increase of 1.5 percent from August and an annual increase of 11.1 percent.
Experiencing double-digit year-over-year growth, the annual rate of rent inflation reached its highest level in nine months, the report said.
The report’s metrics are based on new registrations, not what existing tenants pay monthly.
In terms of rental types, one-bedroom units saw the fastest annual growth in asking rents, climbing 15.5 percent to an average of $1,905.
Two-bedroom apartments increased by an average of $2,268, an increase of 13.1 percent year-over-year, while three-bedroom apartments increased by 11.4 percent, for a average of $2,514.
Studio apartments, which represent the most economical choice, saw the lowest year-over-year growth with an increase of 11.3 percent, with an average rental price of $1,511.
Asking rents for purpose-built and condominium apartments averaged a record high of $2,078 in September, increasing 1.6 per cent month-on-month and 13.3 per cent higher. ‘one year after the next.
NOVA SCOTIA AND ALBERTA LEAD RENT GROWTH
Breaking down the data by region, Nova Scotia and Alberta led the provinces in rental growth for purpose-built and condominium apartments in September, with rates of 15.4 percent and 15 .3 percent, respectively.
Nova Scotia overtook Alberta with the average asking rent for apartments by reaching $2,088, while Alberta increased to $1,663.
Quebec experienced the third fastest annual growth with a rate of 13 percent, followed closely by British Columbia with 12.3 percent.
Despite having one of the highest year-over-year growth rates, asking rents in Quebec remained below the national average of $1,970, while British Columbia had the highest average of all provinces, or $2,656.
In Ontario, the annual growth rate slowed from 9.9 percent in August to 6.6 percent in September. Asking rents in the province also fell 0.4 per cent month over month. Yet despite this glimpse of financial hope, Ontario still has the second highest average rent by province at $2,486.
The Prairie provinces remained the most financially supportive regions, with Saskatchewan and Manitoba both recording the lowest annual rental growth in September, at 3.8 per cent and 3.1 per cent, respectively.
Asking rents in Saskatchewan averaged $1,115 and $1,431 in Manitoba.
TORONTO’S RENTAL MARKET SLOWS, VANCOUVER GROWS
While most major markets in Canada have seen large rent increases, a notable slowdown has been seen in Toronto. compared to August. Rent growth in Canada’s most populous city slowed from 8.7 per cent to 2.3 per cent, making it the smallest annual rate increase in two years.
Even though average month-to-month rent prices in Toronto haven’t changed significantly, this city still has the second highest asking rate at $2,902. Just behind Vancouver, with an average of $3,339, an increase of 7.7 percent year over year.
Among Canada’s largest markets, Calgary maintained its lead in annual growth, with asking rent prices reaching an average of $2,091, an increase of 14.3 per cent in September.
Montreal also saw a double-digit rent increase of 10.2 percent, bringing the average asking rent price to $2,030.
Looking at the country’s mid-sized and small markets, there was also significant annual growth in rents for purpose-built apartments and rental condominiums in September.
Richmond, British Columbia, part of Greater Vancouver, experienced the strongest growth at 28.9 percent, followed by Côte-Saint-Luc, Quebec, part of Greater Montreal, at 27.5 percent. percent and Red Deer, Alberta, with 21.8 percent.
In Ontario, Oakville experienced the fastest annual growth at 19.4 percent.
Among the smaller provinces, Halifax and Regina saw one of the highest increases, at 15.5 percent and 13.4 percent, respectively.
In terms of price, four of the five most expensive mid-sized markets in Canada are located in Metro Vancouver, according to the report’s data. The average asking rent in North Vancouver is $3,481, followed by Burnaby at $3,062, Coquitlam at $2,976 and Richmond at $2,940.
Outside of Toronto, the most expensive markets in Ontario are Oakville, averaging $2,960, Brampton ($2,704), Vaughan ($2,697), Mississauga ($2,687), Etobicoke ( $2,634) and North York ($2,629).
ROOM RENTALS CONTINUE TO INCREASE
According to the rental report, shared rentals have become more popular. Over the past three months, there has been an increase of 27 percent compared to last year.
This trend was particularly pronounced in British Columbia and Ontario, where shared housing listings increased by 40 and 78 percent, respectively.
Average asking rents for shared housing increased 18 percent year-over-year in September, to $944 per month. Vancouver had the highest average asking rent at $1,590, while Toronto had $1,308.
