July Sees Canadian Rents Reach New High, Marking Slowest Annual Growth Rate in Over 2 Years

August 8, 2024 TruthUSA

Rents in Canada rose to their previous all-time-high in July, although growing by the slowest year-over-year pace in 31 months, according to a new report.

The average rent for all residential property types in Canada hit $2,201 in July, up 5.9 percent from 2023, according to the latest numbers from rental listing website Rentals.ca. The average asking rents grew by 0.8 percent from June, which was a reversal of May’s decline of 0.8 percent.

The average asking rent for all property types first passed the $2,200 level in May, according to the report. The average cost of rent in July 2022 was $1,908, while the average cost in July 2021 was $1,725.

The report said that rents were “effectively flat” over the previous three months, decreasing by just $1 at the national level from May to July 2024. The year-over-year increase is the slowest rise since early 2022.

The asking rents for purpose-built and condominium rental apartments rose by 0.5 percent month-over-month in July, reaching an average of $2,156. Compared to a year ago, apartment rents grew by 7.4 percent to $2,131, while condominium units rose 1.9 percent to $2,334.

Studio rents for condominiums declined by 2.8 percent annually in July to an average of $1,887, while average rents for purpose-built studio rentals rose the highest amount, 13.7 percent, followed by three-bedroom units at 12.1 percent, two-bedroom units at 9.1 percent, and one-bedroom units at 7.2 percent.

The report said month-over-month declines in apartment rents in July were seen in Manitoba, Newfoundland and Labrador, Quebec, and Saskatchewan. British Columbia and Ontario were the only two provinces with rents declining from the previous year, with B.C. down 2 percent and Ontario down 1.5 percent.

B.C. continues to have the most expensive average listed rent at $2,570, followed by Ontario at $2,396, and Atlantic Canada at $2,278. These were followed by Quebec at $1,966, the Northwest Territories at $1,861, Alberta at $1,810, Manitoba at $1,632, and Saskatchewan at $1,331.

When broken down by city, Vancouver continues to have the highest 1-bedroom rental prices, sitting at $2,761, followed by Burnaby at $2,556, Toronto at $2,443, and Mississauga at $2,364.

Vancouver saw a 7.2 percent decrease in July rents from 2023, putting its average at $3,101, while Toronto rents declined 4.6 percent to $2,719. Quebec City saw a 21 percent increase to $1,657, Halifax had an 18 percent increase to $2,373, and Edmonton, Regina, and Saskatoon saw increases of more than 13 percent.

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