New report highlights rent rate movements in major urban markets
The average listed rent for all property types across Canada grew by 12.2% annually to reach $2,005 in December, according to the latest National Rent Report by Rentals.ca and Urbanation.
This marked the second consecutive month of average Canadian rent rates exceeding $2,000. The average rate of annual rent increase over all 12 months of 2022 was 10.9%, the report added.
Rentals.ca and Urbanation attributed the growth to the market’s sustained recovery from pandemic-era declines, a recent surge in population numbers, a notable deceleration in home purchases, and overall low rental vacancy rates.
“The Canadian rental market had one of its strongest years ever in 2022, more than reversing any weakness experienced during the pandemic,” said Shaun Hildebrand, president of Urbanation. “Rental demand is primarily being driven by a quickly growing population that is finding it increasingly more difficult to afford homeownership or find suitable rental housing.”
Which Canadian markets saw the strongest rent growth?
As with the last few months, Vancouver once again posted the greatest rate of rent growth among the 35 urban markets surveyed. Vancouver’s average monthly rent in December was $2,596 for one-bedroom homes (up by 16.8% annually) and $3,562 for two-bedroom units (up by 17.9%).
Toronto came in at a close second with rent rates of $2,457 for one-bedroom homes (up by 21.3% year over year) and $3,215 for two-bedroom units (up by 18.1%).
Considering these trends, Hildebrand is optimistic for the rental housing market’s prospects this year.
“Looking ahead for 2023, rents are expected to continue rising, but less heated growth can be expected as the economy slows and new rental supply rises to multi-decade highs,” Hildebrand said.
