The market is seeing multiple upward pressures, including population growth and rate hikes
Canadian rent rates hit a new record high in July, with the average asking rate growing by 8.9% annually to reach $2,078, according to data from Rentals.ca and Urbanation.
This year-over-year pace of growth was the fastest registered in Canada over the last three months, Rentals.ca said.
“The 1.8% increase in average asking rents over June represented the fastest month-over-month growth of the past eight months,” the latest edition of the National Rent Report noted. “Compared to two years ago in July 2021, average asking rents in Canada have risen by 21%, or by $354 per month.”
Rentals.ca said that the increases were mainly due to upward pressures stemming from a robust pace of population growth so far this year, a rush of post-secondary students signing up leases ahead of the fall term, and a significant number of Canadians opting to rent amid the Bank of Canada’s hiking of interest rates to a 22-year high.
The average asking rent for all residential property types in Canada grew by 9.7% annually in February to reach $1,984, according to the latest National Rent Report by @Rentalsdotca and Urbanation.https://t.co/zxMmPhHnSd#mortgage #marketupdates #CAhousing #CArentals
— Canadian Mortgage Professional Magazine (@CMPmagazine) March 16, 2023
Which provinces reported the greatest increases in rent rates?
The July acceleration was especially apparent in Alberta and Quebec. The former, in particular, was the provincial leader in annual rent growth for purpose-built and condo apartments for the third straight month, with average asking rents rising by 15.6% year over year to $1,578.
Quebec posted the second largest annual rent growth in Canada at 13.7% to reach $1,920 in July, accelerating from 11.6% annual growth registered in June.
On the other hand, Ontario slowed down from 9.3% annual growth in June to 9% in July, although the market’s average asking rents remained the second highest in Canada at $2,432. Once again, British Columbia was the most expensive Canadian province to rent in, with asking rates of $2,622.
