Increase comes as demand continues to outpace supply
Canada witnessed another peak in rental market prices in January, with the average listing price for rental properties climbing to $2,196, representing a 10% surge from the previous year.
The increase also marks a 20% jump in asking prices since January 2020, just before the onset of the global COVID-19 pandemic lockdowns, as per the latest figures from Rentals.ca and Urbanation.
Despite the nationwide upward trend in rental prices, there were some disparities in different markets and across different cities.
Vancouver remained the priciest city for renters in Canada, but also saw a 3% decrease in rental costs this January compared to the same period last year.
In contrast, Edmonton experienced the most rapid price increase, with the average rental cost for purpose-built and condo rentals reaching $1,479, up by 17.1%.
Calgary similarly saw a significant rise, with average rents reaching $2,047, marking a 12.8% increase from the previous year.
CBC News also reported a rise in the cost of one-bedroom rentals, with prices rising by 12.6% in January.
Vancouver led with the highest average price for one-bedroom units at $2,683, followed closely by Burnaby, BC and Toronto, with average prices of $2,551 and $2,511, respectively. Saskatoon emerged as the most affordable city for one-bedroom rentals, averaging at $1,192.
Moreover, the average rent for shared accommodations across Alberta, British Columbia, Ontario, and Quebec saw an 18.5% annual increase, setting the average price at $1,010 in January.
Rental costs went up last year as demand continued to outpace supply, causing the national vacancy rate to plummet to its the lowest level since Canada Mortgage and Housing Corp. (CMHC) began its record-keeping in 1988.
According to CMHC’s latest data, the vacancy rate for purpose-built rental apartments dropped to 1.5% in the initial two weeks of October 2023. This marked a decrease from 1.9% in the previous year, indicating a continued squeeze in available rental units, which had already been at a two-decade low.
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