The average asking rental price in Canada surpassed $2,200 to reach a record high in May, according to a new report. Published by Rentals.ca and Urbanation, the June 2024 Update Rentals.ca Rent Report found that the average monthly asking price for all residential rentals increased by 9.3% year-over-year to hit $2,202 in May, surpassing the $2,200 level for the first time.
The report, written by Toronto-based real estate research firm Urbanation and based on data from residential listings posted on the website Rentals.ca, highlighted notable trends in the rental market. While Vancouver and Toronto saw slight decreases in rental rates since May 2023, smaller cities like Regina, Quebec City, and Halifax experienced annual increases of 10% or more.
“Canada’s rental market is entering the peak summer season with continued strength,” Urbanation president Shaun Hildebrand stated in a news release. “Markets such as Vancouver and Toronto that had experienced some softening in rents in previous months are stabilizing near record highs, while many of the country’s mid- and small-sized cities are still posting double-digit rent increases.”
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At a provincial level, British Columbia led Canada with the highest average rental asking price at $2,526 for an apartment or condo, marking a 2.3% increase, followed by Ontario at $2,423, a 0.7% increase. The surge in rental prices across Canada was driven in part by large annual increases in Saskatchewan (21.4% to $1,334), Alberta (17.5% to $1,787), and Nova Scotia (17.1% to $2,238).
Among Canada’s larger cities, Edmonton recorded the highest increase in asking price at 14.6%, yet remained more affordable on average than Calgary with $1,507 versus $2,089, respectively. For all apartments and condo sizes, prices remained the highest in Vancouver ($3,008) and Toronto ($2,784).
Vancouver also continued to lead the country with the most expensive asking price for a one-bedroom rental at $2,671, followed by Burnaby, B.C. at $2,545, Toronto at $2,479, and Mississauga, Ont. at $2,339. In contrast, more affordable rental rates were observed in smaller cities such as St. John’s, N.L. ($955), Fort McMurray, Alta. ($1,242), and Saskatoon, Sask. ($1,258).
A significant trend highlighted in the report is the differing growth rates between purpose-built rental apartments and condominium rentals. Asking rents for purpose-built and condominium rental apartments increased by 10.6% annually in May, with purpose-built rental apartments experiencing a remarkable 13.7% increase from a year ago, compared to a modest 3.4% growth for condo rents. Purpose-built studio apartments, which were priced lower on average at $1,615, saw the fastest annual growth at 17.8%.
All provinces recorded annual increases in apartment rents for both purpose-built and condo rentals in May. Ontario saw a 0.6% gain, while B.C. observed a 2.3% annual increase, averaging the highest rents at $2,526. Quebec experienced a 0.6% month-over-month decline, though asking rents were still up 6.7% from last year. Notably, Nova Scotia, Alberta, and Saskatchewan drove the majority of rent inflation with annual increases of 17.1%, 17.5%, and 21.4%, respectively.
Despite the broader upward trend, Toronto and Vancouver continued to see annual declines in apartment rents, albeit at a reduced rate compared to previous months. Toronto’s apartment rents decreased by 0.9% year-over-year to an average of $2,784, while Vancouver’s were down 4.1% to $3,008. Conversely, Edmonton led the nation’s larger cities with a 14.6% annual increase in asking rents, maintaining a more affordable average of $1,507 compared to Calgary’s $2,089.
Lloydminster emerged as Canada’s fastest rising rental market, with asking rents for apartments up 29.3% year-over-year to an average of $1,150. Meanwhile, roommate rents in Toronto and Ottawa saw slight declines, with Toronto experiencing a 3.2% decrease to $1,257 and Ottawa a 1.2% dip to $936. Vancouver maintained the highest average asking rents for shared accommodations, increasing by 2.5% to $1,469.
Information for this briefing was found via CTV News and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
