How high are Canada's rent rates now?

Average monthly rents in Canada have exceeded the $2,000 threshold with no signs of stopping any time soon, according to a new report by Rentals.ca and Urbanation.

In November, average rent rates went up to $2,024, representing increases of 2.5% on a monthly basis, 4.9% over the last three months, and 12.4% year over year. The November level was also 10.5% higher than the pre-pandemic average.

“Rents in Canada are rising at an exceptionally high speed, which is having a profound effect on housing affordability as interest rates continue to rise,” said Shaun Hildebrand, president of Urbanation

An emerging trend is the steady increase of rent rates not just in the urban cores, but also in the traditionally less overheated outskirts.

“With the most expensive cities experiencing very low supply and the fastest rates of rent increase, regions with high population growth are seeing demand shift into more affordable areas,” Hildebrand said.

Which Canadian cities have the most expensive rents?

Vancouver was once again the most expensive city to rent in Canada, with rates reaching $2,633 for one-bedroom homes (up by 20.5% annually) and $3,598 for two-bedroom units (up by 21.3%) in November.

Toronto came a close second with rates at $2,532 for one-bedroom homes (up by 23% annually) and $3,347 for two-bedroom residences (up by 20.7%).

At the other end of the spectrum was Montreal, which ranked 23rd for average monthly rent rates for one-bedroom homes at $1,572 (up by 6% annually) and 21st for two-bedroom units at $2,072 (up by 5.9%).