Strongest growth was registered in markets with intensified immigration levels
Last month, average asking rents in Canada for all asset classes went up by 20% from the pandemic-era nadir seen in April 2021 to reach a monthly rate of $2,002, according to the latest National Rent Report by Rentals.ca and Urbanation.
This was essentially unchanged from the level seen in March ($2,004), and represented a 9.6% annual increase ($1,827 in April 2022).
“Rents continued to face upward pressure across Canada during April, with the strongest growth felt in markets that see the highest levels of immigration,” said Shaun Hildebrand, president of Urbanation. “Tenants that signed leases during the pandemic may be facing rent increases of 20% or more if they decide to move, causing reduced turnover that is exacerbating the low supply situation.”
Vancouver led the pack in average monthly rent rates in April, the report said. The market’s average monthly rent for a one-bedroom home was $2,787 (up by 14.7% year over year), and average monthly rent for a two-bedroom was $3,741 (up by 17.6%).
Toronto came close behind with one-bedroom rates averaging at $2,526 (up by 20.5%) and two-bedroom offerings coming at $3,290 (up by 18%).
“Canadians have become accustomed to increasing rents after the pandemic,” said Matt Danison, CEO of Rentals.ca. “Record immigration with most newcomers renting, high interest rates keeping first-time home buyers on the sidelines, and inflation are all drivers of rising rents, increasing demand, and low vacancy rates.”
