New Report Shows Rent Prices in Canada Reach Highest Levels Ever

June 7, 2024 TruthUSA

Rental costs have reached a new all-time high in Canada, as per the most recent data from rental listing website, Rentals.ca.

The average asking rent for all types of properties in Canada rose by 9.3 percent year-over-year to $2,202 in May, crossing the $2,200 mark for the first time, according to the report. In May 2023, the average rent cost was $2,014.

Vancouver leads the pack of 35 cities, with an average rental price of $2,671 for a one-bedroom unit and $3,628 for a two-bedroom. In the Lower Mainland, Burnaby follows with the second-highest rent rates at $2,545 for a one-bedroom and $3,213 for a two-bedroom.

Toronto takes the third spot nationally, with a one-bedroom rent of $2,479 and a two-bedroom rent of $3,284. Mississauga secures fourth place with an average rent of $2,339 for a one-bedroom and $2,702 for a two-bedroom.

North York completes the top five most expensive rental markets in Canada, with a one-bedroom unit costing $2,287 and a two-bedroom unit costing $2,696.

St. John’s emerges as the most affordable city on the list, with a one-bedroom rental priced at $955 and a two-bedroom at $1,149. Fort McMurray follows as the second cheapest with a one-bedroom costing $1,242 and a two-bedroom at $1,473. Saskatoon ranks third in affordability, with a one-bedroom apartment at $1,258 and a two-bedroom at $1,459.

Provincial Breakdown

Increases in rent in Nova Scotia, Alberta, and Saskatchewan drove the annual rental inflation in the country, as per the report authors. All three provinces witnessed a minimum 2 percent month-over-month increase.

Rental prices saw a decline in Vancouver and Toronto annually, with Toronto experiencing a 0.9 percent drop and Vancouver seeing a 4.1 percent drop in prices.

Toronto rents are currently 4.4 percent lower than their peak in November 2023. Vancouver rents reached their highest point in July 2023 and are now 9.9 percent lower.

Edmonton tops the list in terms of cities with the highest rent growth, with a 14.6 percent annual increase, the report indicates. However, rental costs in this city remain lower than in Calgary, which saw a 7.6 percent annual increase.

Lloydminster, located on the border of Alberta and Saskatchewan, is the city with the fastest-growing rents in the country. Rents in this area have risen nearly 30 percent over the past year, with an average rental price of $1,150, which is still 46 percent below the national average, according to the report.

Type of Rental

The data includes prices of rental apartments, condominiums, and townhouses. Breaking it down, a one-bedroom apartment rents for an average of $1,942, a one-bedroom condo for $2,087, and a one-bedroom townhouse for $1,506.

Condo rental prices increased by 10.6 percent in May 2023, while apartment rents saw a year-over-year increase of 13.7 percent.

Shared accommodation costs have also risen in the past year, with May witnessing an 8.4 percent increase in asking rents for shared living spaces. The average price for a roommate-style setup is $992, with British Columbia having the highest cost at $1,191, followed by Ontario at $1,069. Alberta saw the largest increase in shared accommodation rents, rising by 9.6 percent from last year to reach $883.

In Toronto, the cost of renting with a roommate decreased by 3.2 percent, settling at $1,257, while Ottawa also witnessed a 1.2 percent drop to $936, according to the report authors. Calgary experienced an 8.5 percent rise in roommate rentals, now at $915. Vancouver, however, remains the priciest city for roommate rentals at $1,469, marking a 2.5 percent increase from May 2023.

The report data is based on monthly listings on Rentals.ca.

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