Asking Rents Across Canada Increase 9 Per Cent from 2023: Report

According to Rentals.ca and Urbanation’s latest National Rent Report, average asking rents for all residential property types in Canada increased 9.3 per cent year-over-year in April, reaching an average of $2,188 per month.

This rate of increase is an acceleration from the 8.8 per cent annual increase recorded in March.

The month of April also marked the three-year anniversary since rents hit their COVID-19 low in April 2021, with average rents having increased by a total of 32 per cent, which translates to an additional $526 per month, according to the report.

“The rental market in Canada has become increasingly fragmented, with expensive cities seeing rents soften and affordable markets experiencing a continued rapid escalation,” said Shaun Hildebrand, president of Urbanation. “Without a sufficient supply response, those affordable markets are at risk of quickly becoming unaffordable, leaving renters nowhere to turn.”

According to the report, average asking rents experienced a 0.3 per cent month-over-month increase in April after seeing rents decrease slightly by 0.4 per cent over the past three months.

Purpose-built and condominium rental apartments saw an overall increase of 9.3 per cent year-over-year in April. The report noted that purpose-built rentals also outpaced condos with a growth rate of 13.1 per cent, reaching an average of $2,124 per month. Condo rentals recorded a more modest growth rate of 3.8 per cent, averaging $2,331 per month

According to the report, Saskatchewan was the provincial leader in annual rent growth, surpassing Alberta with an 18.4 per cent increase in asking rents. Ontario was the only province to see a decrease in asking rents, with a 0.3 per cent monthly decrease, and a 0.7 per cent annual decrease to $2,404.

The report noted that Edmonton maintained its position as the leader for rent growth among Canada’s largest cities, with a 13.3 per cent increase to an average of $1,507.

Vancouver rents declined by 0.4 per cent month-over-month, and 7.8 per cent year-over-year to an average of $2,982, while Toronto rents were down by 0.9 per cent monthly, and 2.3 per cent annually to an average of $2,757.

North Vancouver remained Canada’s most expensive rental market, with asking rents for apartments averaging $3,190. Lloydminster posted the fastest annual rent growth in Canada, with asking rents up 26.7 per cent. The second fastest was Waterloo (+18.7 per cent), and Regina was the third fastest (17.6 per cent), according to the report.

In terms of asking rents for shared accommodations, they increased by 9 per cent annually, averaging $996 per month. Alberta led all provinces with an 11 per cent year-over-year increase to $879.

Toronto roommate rents decreased 5 per cent annually to an average of $1,269, while Vancouver rents for shared accommodations declined 1 per cent from a year ago to $1,450. Calgary saw asking rents for shared accommodations increase by 10 per cent to an average of $908.