Average rental prices in Canada surge to record highs in October 2023: report

Rental prices in Canada reached a new high with the average asking price of $2,149 per month, according to a new report compiled by a Canadian rental listings website.

According to Rentals.ca and real estate research firm Urbanation, the Canadian market continued its upward trajectory with data suggesting a monthly increase of 1.5 per cent from August, and an annual surge of 11.1 per cent.

Experiencing double-digit year-over-year growth, the annual rate of rent inflation surged to its highest point in nine months, stated the report.

The report’s metrics are based on new listings, not what existing tenants are paying per month.

In terms of rental types, one-bedroom units recorded the fastest annual growth in asking rents, soaring by 15.5 per cent, reaching an average of $1,905.

Two-bedroom apartments averaged $2,268, marking a 13.1 per cent increase year-over-year, while three-bedroom units were up by 11.4 per cent, averaging $2,514.

Studios, representing the most economical choice, had the lowest year-over-year growth with an increase of 11.3 per cent, averaging $1,511 in rental prices.

Asking rents for purpose-built and condominium apartments averaged a record high of $2,078 in September, increasing 1.6 per cent month-over-month and 13.3 per cent year-over-year.

NOVA SCOTIA AND ALBERTA LEAD RENT GROWTH

Breaking down the data by region, Nova Scotia and Alberta led the provinces in rent growth for both purpose-built and condominium apartments in September, with rates of 15.4 per cent and 15.3 per cent, respectively.

Nova Scotia surpassed Alberta with the average asking rents for apartments by reaching $2,088, while Alberta rose to $1,663.

Quebec had the third fastest annual growth with a rate of 13 per cent, followed closely by British Columbia with 12.3 per cent.

Despite having one of the highest growth rates year-over-year, Quebec’s asking rents remained below the national average with $1,970, while B.C. had the highest average of all provinces at $2,656.

In Ontario, the annual rate growth slowed from 9.9 per cent in August to 6.6 per cent in September. Asking rents in the province also declined by 0.4 per cent month-over-month. Yet, despite this glimpse of financial hope, Ontario still has the second highest rent average by province at $2,486.

The Prairie provinces remained the most financially friendly locations as Saskatchewan and Manitoba both had the slowest annual rent growth in September at 3.8 per cent and 3.1 per cent, respectively.

Saskatchewan’s asking rents averaged $1,115 and $1,431 for Manitoba.

TORONTO RENTAL MARKET SLOWS, VANCOUVER GROWS

While most major markets across Canada witnessed robust rent increases, there was a noticeable slow down in Toronto compared to August. The rent growth in Canada’s most populated city slowed from 8.7 per cent to 2.3 per cent, making it the slowest annual rate increase in two years.

Although month-over-month average rent prices in Toronto did not change significantly, this city still has the second-highest asking rate at $2,902. Right behind Vancouver at an average of $3,339, which is a 7.7 per cent increase year-over-year.

Among Canada’s largest markets, Calgary maintained its annual growth lead as asking rent prices reached an average of $2,091, or a 14.3 per cent increase in September.

Montreal also had a rent increase in the double-digits at 10.2 per cent, raising the average asking rent price to $2,030.

When it comes to the country’s medium and smaller markets, there was also a significant annual rent growth for purpose-built and condominium rental apartments in September.

Richmond, B.C., which is part of Greater Vancouver, had the strongest growth at 28.9 per cent, followed by Cote-Saint-Luc, Que., part of Greater Montreal, at 27.5 per cent and Red Deer, Alta at 21.8 per cent.

In Ontario, Oakville had the fastest annual growth of 19.4 per cent.

Within smaller provinces, Halifax and Regina had one of the highest increases at 15.5 per cent and 13.4 per cent, respectively.

In terms of prices, four of the five most expensive mid-sized markets in Canada are located in Greater Vancouver, according to the report’s data. North Vancouver average asking rent is $3,481, followed by Burnaby at $3,062, Coquitlam at $2,976 and Richmond at $2,940.

Outside of Toronto, Ontario’s most expensive markets include Oakville, averaging $2,960, Brampton ($2,704), Vaughan ($2,697), Mississauga ($2,687), Etobicoke ($2,634), and North York ($2,629).

ROOMMATE RENTALS CONTINUE TO SURGE

According to the rental report, roommate rentals have become more popular. Over the last three months, there was a 27 per cent increase compared to last year.

This trend has been particularly pronounced in B.C. and within Ontario, as shared accommodation listings increased by 40 and 78 per cent, respectively.

Average asking rents for shared accommodations rose by 18 per cent year-over-year in September, reaching $944 per month. Vancouver had the highest average asking rent at $1,590, while Toronto had $1,308.