Market demand continues to significantly outstrip rental supply in Canada, new report says
Reflecting the growing unaffordability now apparent in housing markets across Canada, the average asking rent for all property types nationwide grew by 10.8% annually in March to reach $2,004, according to the latest National Rent Report by Rentals.ca and Urbanation.
This also represented an approximately 1% monthly increase, the first such growth since November.
“Spring arrived with a highly competitive rental market in Canada, driven by a record population increase of over 1 million people in the past year and low homeownership affordability after last year’s spike in interest rates,” said Shaun Hildebrand, president of Urbanation.
Over the past year alone, the average national asking rent has grown by $196 – a strong indicator of how demand is outstripping rental housing supply in Canada, Rentals.ca and Urbanation said.
Vancouver continues to be the most expensive market in Canada to rent in, with the average monthly rent in the city for one-bedroom homes reaching $2,743 (up by 17.3% annually), and the average for two-bedroom units settling at $3,653 (up by 21.5%).
Toronto registered an average monthly rent of $2,506 for one-bedroom offerings (up by 22.2% year over year) and $3,286 for two-bedroom listings (up by 19.7%).
Montreal saw its rents reach $1,619 for one-bedroom units (up by 7.5% annually) and $2,155 for two-bedroom homes (up by 10.6%).
The report is anticipating these trends to hold over much of the year.
“With supply unable to keep up with current levels of demand, expect further upward pressure on rents in the coming months,” Hildebrand said.
