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HomeCANADAAverage Monthly Cost Of Renting Home In Canada Reaches $2,024, Up 12.4%...

Average Monthly Cost Of Renting Home In Canada Reaches $2,024, Up 12.4% From Last Nov: And Urbanation Report

Rent inflation continued to accelerate in Canada during November, with the average listed rent for all types of rental units (including apartments, condominiums and houses) increasing 12.4% from a year ago to a record high $2,024. Rents showed no signs of slowing down last month, rising 2.5% from October and 4.9% over the past three months.

Average Rents Surpass $2,000 in Canada

Renters active in the market are now paying an average monthly rent that is $224 higher than last year. Compared to the pre-pandemic average three years ago in November 2019, average rents in Canada have increased 10.5%.

Two-Bedroom Rents Increased the Most

Within the purpose-built and condominium rental apartment segments, rents grew the fastest over the past year for two-bedroom units, increasing 12.2% to an average of $2,133. One-bedroom rents increased 8.9% year over year to an average of $1,739, while studio rents grew 6.5% and three-bedroom rents grew 5.6% to reach averages of $1,402 and $2,389, respectively.

Atlantic Canada Leads Rent Growth in Canada

Atlantic Canada continued to represent the fastest appreciating rental market in Canada, posting 31.8% annual growth in November for purpose-built and condominium rentals. Average rents in Atlantic Canada reached $1,716 for one-bedroom units and $2,032 for two-bedroom units, the third most expensive rental market in Canada behind British Columbia and Ontario. Average rents for purpose-built and condominium rents rose 16% annually in British Columbia and 15.3% annually in Ontario. One-bedroom rents averaged $2,173 in British Columbia and $2,156 in Ontario, while two-bedroom rents averaged $2,820 in British Columbia and $2,638 in Ontario.

Alberta rents were also up double digits in November (15% year over year), but considerably more affordable at averages of $1,283 for one-bedrooms and $1,618 for two-bedrooms. Quebec remained the slowest growing market for rents with an annual increase of 6.3%.

Steepest Rent Increases in Priciest Markets of Vancouver and Toronto

Among major markets in Canada with populations over 1 million, average rents for purpose-built and condominium apartments increased fastest for the most expensive cities, with Vancouver and Toronto rents up 24.3% and 23.7%, respectively. One-bedroom rents averaged $2,661 in Vancouver and $2,551 in Toronto, while two-bedroom rents averaged $3,707 in Vancouver and $3,363 in Toronto.

Calgary represented the third fastest growing rental market among Canada’s largest cities, posting annual growth of 21.9%. Rents in Calgary were substantially less expensive than in Vancouver and Toronto at an average of $1,572 for one-bedrooms and $1,978 for two-bedrooms.

Montreal, which is Canada’s largest rental market, had the slowest annual rent increase among major metros at 7.6%, with rents that have become comparable to Calgary at an average of $1,574 for one-bedrooms and $2,076 for two-bedrooms.

Strongest Rent Increases in Markets that Surround Toronto

Among medium-sized markets, purpose-built and condominium rents increased fastest over the past year in several cities that surround Toronto, including Brampton (28%), North York (25.8%), Etobicoke (24.5%), Scarborough (22.9%) and Mississauga (19.2%).

Markets west of the GTA also recorded strong rent increases, with London and Kitchener rents up 27.9% and 24.1%, respectively. Outside of Ontario, the fastest growing medium-sized markets were found in Halifax (24.2%) and Burnaby (23.6%).

Markets such as Barrie, Hamilton, Lethbridge, and Surrey located farther out from large cities in Toronto, Calgary, and Vancouver recorded annual rent growth in the 17% to 19% range.

Within Quebec, the growth leader was Quebec City with a 13.8% annual rent increase.

In the Prairies, fairly consistent rent growth was recorded in Regina (13.4%), Saskatoon (12.4%), and Winnipeg (10.4%).

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