Shelter costs continue to spike
A report by Rentals.ca and Urbanation has found that the average asking rent for all types of properties in Canada reached a record high in January 2024.
According to the latest National Rent Report, the average asking rent for all property types has increased by 10% year over year, rising to $2,196. This also represented a 0.8% monthly rise, which caused the annual rate of rent growth to reach a four-month high.
“The Canadian rental market began 2024 where it left off in 2023, with rents surging to new highs,” said Shaun Hildebrand, president of Urbanation.
“However, an underlying narrative has emerged between softening rents in expensive markets and strengthening rents in more affordable markets. These shifts in demand are symptomatic of a worsening supply situation for rentals in Canada.”
Purpose-built rental apartments had the most substantial growth, with average asking rent increasing by 13.5% in the past year, amounting to a jump of $2,107. This was followed by condominium rentals with a 4.1% annual increase to $2,372 and house rentals, which had a 5.6% annual increase to $2,352.
One-bedroom apartments saw rents increase by 12.6% annually, climbing to an average of $2,146. Meanwhile, two-bedroom apartments had an 11% increase with an average of $2,334 and three-bedroom apartments had an 11.6% increase with an average of $2,638. Studio apartments saw rents rise by 11.8% year-over-year, averaging about $1,595.
Nova Scotia, Alberta, and Saskatchewan had the highest annual rent inflation rates with 19.1%, 17.8%, and 17.5%, respectively. British Columbia continues to be the most expensive province as average asking rents were $2,529 for purpose-built and condominium apartments. However, it had a slower annual growth rate with 2.3%.
Edmonton had a 17.1% annual increase, with an average of $1,479 for purpose-built and condominium rentals. Vancouver continues to be the most expensive city in Canada as it has an average asking rent of $3,055 while Toronto has an average asking rate of $2,830.
Shared accommodations saw an 18.5% increase in average asking rents, amounting to $1,010. Vancouver and Toronto had the highest roommate rents with $1,338 and $1,311 respectively.
The National Rent Report analyses the trends within the rental market on national, provincial, and municipal levels across all listings within the Rentals.ca Network for Canada. In the latest report, data from Rentfaster.ca, a digital rental platform, was incorporated.
