top of page

Average Canadian rent price hits new high for sixth consecutive month



In a disconcerting trend, the average asking price for rental units in Canada has surged to a new high for the sixth consecutive month, reaching $2,178 last month. This represents a staggering 9.9 percent year-over-year increase, according to the latest rental price report released by Rentals.ca and Urbanation. The report, which analyzes monthly listings from Rentals.ca's network, sheds light on the persistent escalation of rental prices, with October marking the second-fastest annual increase in the past seven months.


While the October annual growth rate slightly dipped to 9.9 percent from the 11.1 percent witnessed in September, the month-to-month analysis reveals a 1.4 percent increase in average asking rents. Although this marks a marginal decrease from the gains in September (1.5 percent) and August (1.8 percent), experts attribute this fluctuation to seasonal factors influencing the rental market.


Breaking down the figures, the average cost of a one-bedroom unit in October stood at $1,906, indicating a substantial 14 percent increase from the same month in 2022. Meanwhile, the average asking price for a two-bedroom unit reached $2,255, reflecting an 11.8 percent annual surge, highlighting the widespread impact on renters across different unit sizes.


Vancouver maintained its position as Canada's most expensive city for renters, with average asking prices of $2,872 for a one-bedroom and $3,777 for a two-bedroom. Although these figures represented a slight decrease from September's rates, they still marked a significant 6.7 percent and 5.5 percent increase, respectively, on an annual basis.


Following closely behind, Toronto emerged as the second-highest ranked major city, with average asking prices of $2,607 for a one-bedroom and $3,424 for a two-bedroom unit.


The rental inflation sweeping across Canada is notably influenced by price hikes in Alberta, Quebec, and Nova Scotia. Strong population growth and substantial additions to the rental supply, priced at above-average market rates, contribute to this escalating trend.


Rentals.ca spokesman Giacomo Ladas expressed concern about the affordability crisis, stating, "Rents are getting so high to the point where people are almost out of options. They're looking desperately to find more affordable rents."


Calgary topped the list for annual rent growth among Canada's largest cities for the ninth consecutive month. Asking rents for purpose-built and condominium apartments in Calgary rose by 14.7 percent year-over-year, reaching an average of $2,093 in October. Montreal closely followed with an annual rent growth of 10.2 percent, resulting in an average rent of $2,046.


Ladas attributed the influx of interprovincial migration to more affordable rent in places like Calgary, as individuals seek alternatives to the soaring costs in areas like Ontario and British Columbia.


A critical factor contributing to rising rent prices is the reluctance of individuals to enter the homeownership market due to high-interest rates. With one-third of Canadian households now renting—a rate growing twice as fast as homeownership—Ladas highlighted the challenges people face in pursuing homeownership amid the prevailing economic conditions.


As the rental market continues to tighten its grip on Canadians, policymakers face the urgent task of addressing the affordability crisis to ensure that citizens are not left without viable housing options.


1 view

Comments


service.png
  • Instagram
  • Facebook
  • Twitter
  • LinkedIn
  • YouTube
  • TikTok
Email Support Photos_Square.png
bottom of page