Asking Rents in Canada Surpass $2,200 to Reach Record High: Report

According to Rentals.ca and Urbanation’s latest National Rent Report, average asking rents for all residential property types in Canada increased 9.3 per cent year-over-year in May, reaching an average of $2,202 per month.

The report noted that this rate of increase is consistent with the annual growth rate recorded in April and reflects an average annual growth of 9.1 per cent over the past three years.

The latest five-year average annual growth for asking rents was 4.7 per cent, despite rent declines experienced during 2020 and 2021, according to the report.

“Canada’s rental market is entering the peak summer season with continued strength,” said Shaun Hildebrand, president of Urbanation. “ 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.”

The report noted that all provinces recorded annual increases in apartment rents for purpose-built and condo rentals in May. Ontario saw a 0.6 per cent gain after recording a 0.7 per cent annual decrease in April, with rents reaching an average of $2,423.

In terms of apartment rent growth in B.C., it increased from a 1.6 per cent annual pace in April to a 2.3 per cent annual pace in May, with rents averaging the highest of all provinces at $2,526.

Both Ontario and B.C. recorded month-over-month rent increases in May of 0.7 per cent and 0.8 per cent, respectively, according to the report.

The report noted that Quebec was the only province to record a month-over-month decline in apartment rents during May, dipping 0.6 oer cent from April to an average of $1,999, although asking rents in Quebec were still up 6.7 per cent from last year.

According to the report, asking rents for apartments in Vancouver and Toronto continued to decline on an annual basis in May, however less than in April.

Toronto apartment rents decreased 0.9 per cent year-over-year in May to an average of $2,784, while Vancouver rents were down 4.1 per cent from a year ago

The report noted that Edmonton continued as the leader in rent growth among Canada’s largest cities, posting a 14.6 per cent annual increase in asking rents for apartments. Edmonton’s average asking rents for apartments remained significantly less expensive, despite increasing by nearly twice the amount in Calgary over the past year.

According to the report, three provinces continued to drive the majority of annual rent inflation for apartments in Canada: Nova Scotia, Alberta, and Saskatchewan. All three provinces saw rents rise by at least 2 per cent on a month-over-month basis.

In terms of asking rents for shared accommodations, they increased 8.4 per cent annually in May across four provinces with listings during May, reaching an average of $992.