Average asking rent prices reach $2,193 in February, up 10.5% from 2023

The rental landscape in Canada witnessed a substantial surge in average asking prices during February, according to a recent report by Rentals.ca and Urbanation. The average monthly asking price for rental units across the nation reached $2,193, marking a significant 10.5% increase compared to the same period last year. This surge represents the swiftest annual growth observed since September 2023.

Breaking down the data reveals that the average monthly cost for a one-bedroom unit in February stood at $1,920, reflecting a noteworthy 12.9% uptick from the corresponding month in 2023. Meanwhile, those in search of a two-bedroom unit encountered an average asking price of $2,293, signifying an 11.3% annual increase.

Zooming out to a broader perspective, the report discloses that asking rents in Canada have experienced an overall ascent of 21% over the past two years. This translates to an average monthly increase of $384 since just before the onset of interest rate hikes by the Bank of Canada.

Alberta retained its distinction as the province witnessing the most rapid rental price growth. In the previous month, average asking prices surged by a substantial 20% annually, reaching $1,708. However, British Columbia and Ontario posted more modest growth rates in February, with annual increases of 1.3% and one percent, respectively. Despite the slower growth, these provinces remain the costliest for renters, commanding total average asking rents of $2,481 in B.C. and $2,431 in Ontario.

Further delving into the data, traditional purpose-built rental apartments emerged as the category with the fastest year-over-year price growth in February, boasting a robust 14.4% increase. The average rent for such apartments reached $2,110. On the other hand, condominium rentals and apartments in houses experienced more moderate annual growth rates of 5% and 5.3%, respectively, with average rents standing at $2,372 and $2,347.

The report underscores the evolving dynamics of the Canadian rental market, highlighting the varying growth rates across provinces and housing types. The data reflects not only the overall increase in rental prices but also nuances in the pace of growth, emphasizing the importance of considering regional and housing category factors for a comprehensive understanding of the current rental landscape in Canada.