Average rents across Canada rose 11.8 per cent year over year in October 2022, which is more than double the annual hourly wage increase of employees at 5.6 per cent, as reported by Statistics Canada. 11.8 per cent represents a rent increase of about $209 per month, bringing the cost of rent in Canada up to $1,976 for all property types.
“The unprecedented growth in rents underway is broad-based across Canada, with most markets reporting double-digit annual rent inflation,” said Shaun Hildebrand, president of Urbanation, who contributed to the latest National Rent Report from Rentals.ca. “The rental market keeps getting hotter with each interest rate increase, coupled with a record high increase in the population. The need to ramp up rental supply has never been greater.”
In the period since March when interest rates began to rise, the average rent increase in Canada went up 9.2 per cent, which compares to a nearly-equivalent 9.9 per cent decline in benchmark resale prices for the same period, as reported by the Canadian Real Estate Association.
Among markets in Canada with populations over 1 million, average rents for purpose-built and condominium apartments remained highest in Vancouver in October at $2,976. The third most expensive of Canada’s largest markets is Ottawa, where rents surged 7.6 per cent month over month in October to an average of $2,146.
Toronto finished second behind Vancouver for average monthly rent in October with one-bedrooms costing $2,478 and two-bedrooms costing $3,319. Year over year, this represents an increase of 23.7 and 23.8 per cent respectively.
Montreal and Calgary rents have converged at averages of $1,756 and $1,717, respectively, while Edmonton remained the most affordable of Canada’s largest markets with an average rent of $1,273.
For mid-sized markets, year-over-year average rents in October for condominium rentals and apartments grew most in London and Kitchener with annual increases of 26 per cent and 24 per cent, respectively. Halifax followed with average rents rising 21 per cent annually.
Year over year, average rents for condo rentals and apartments in Mississauga, Victoria and Hamilton increased in October by 18.5 per cent, 14.9 per cent and 12.7 per cent respectively.
The most affordable of the mid-sized markets were Quebec City and Winnipeg, which also had the slowest annual rent growth of 9.9 per cent and 5.2 per cent, respectively.
Provincially, rents increased the most in Atlantic Canada, (Nova Scotia, New Brunswick, Newfoundland and Labrador and Prince Edward Island) with year-over-year growth of 32.2 per cent for an average of $2,199 for purpose-built and condominium apartments.
Ontario average rents rose annually by 17.7 per cent for condo rentals and apartments, followed by British Columbia and Alberta with growth of 15.1 per cent and 13.2 per cent, respectively. The fastest growing provinces for rent inflation also experienced the fastest rates of population growth over the past year through the third quarter. Similarly, the provinces with the slowest rates of rent growth — Saskatchewan, Manitoba, and Quebec — recorded below-average population growth.
British Columbia remained the most expensive province for renters with an average cost of $2,433 for purpose-built and condominium apartments, while Ontario is beginning to close the gap with an average rent of $2,372.
For the complete report, click here: Rentals.ca November 2022 Rent Report
