Average rents in Canada just reached another all-time high

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It may not come as a surprise, but the average price of rent in Canada just reached a whopping new high.

According to the August 2023 rental report from Rentals.ca and Urbanation, the average asking rent in Canada skyrocketed to $2,078 last month, marking the fastest price growth over the past three months.

The report notes that asking rents in Canada increased by 21% ($354) per month compared to July 2021. Year-over-year, rental prices saw an 8.9% spike.

The rise in rent can be linked to the Bank of Canada’s recent interest rate increase and post-secondary students looking to secure rental housing before a new fall semester starts.

“Canada’s rental market is currently facing a perfect storm of factors driving rents to new highs,” said Shaun Hildebrand, president of Urbanation, in a release.

“These include the peak season for lease activity, an open border policy for new residents, quickly rising incomes, and the worst ever homeownership affordability conditions.”

The report notes that the average asking rents for purpose-built and condo apartments reached $2,008 in July, surpassing $2,000 for the first time.

Year-over-year, asking rents for purpose-built and condo apartments saw an 11.3% increase and a 2% increase month-over-month.

Rentals.ca

One-bedroom purpose-built and condo rentals saw the biggest increase (+13% YOY), averaging $1,850.

The average rent for two bedrooms came in at $2,192. For three bedrooms, the average was reported at $2,413.

Rentals.ca

Here’s a breakdown of the average rental prices in Canada’s major cities.

Vancouver

Vancouver unsurprisingly remained in the top spot for the highest rent out of 35 Canadian cities.

Average one-bedroom rents came in at $3,013 (+16.2% YOY), and two-bedroom units were a lofty $3,981 (+15.7% YOY).

For apartment and condo listings specifically, Vancouver’s average rental prices remained astronomical.

The average rent for one-bedroom units came in at $3,037. Two bedrooms averaged $3,981, and three bedrooms were a whopping $4,604.

Toronto

Toronto maintained the second-highest rent for major Canadian cities, with one-bedrooms averaging $2,592 (+13.4% YOY) and two-bedroom units averaging $3,370 (+8.9% YOY).

The report states that Toronto saw an 11.5% increase in average asking rents in July for apartment and condo listings, compared to June, reaching $2,849.

Rent for one-bedroom apartments and condo units averaged $2,601, two bedrooms were $3,386, and three bedrooms came in at $3,729.

Calgary

Calgary continued to have the fastest rent growth among the largest markets in the country for purpose-built condos and apartments.

Asking rents for these units increased by 16.1% to $2,036, indicating a slight cool-down from the 18.4% increase it saw in June.

The average rental price for a one-bedroom was $1,718 (+11.4% YOY) and $2,121 for a two-bedroom unit (16.9% YOY).

Edmonton

Edmonton came in 31st in Rental.ca’s ranking of highest rents, followed by Lethbridge and Regina.

One-bedroom units in Edmonton averaged $1,197 (12.8% YOY), and two-bedrooms clocked in at $1,531 (+11.5% YOY).

The average rent for one-bedroom apartments and condo units came in at $1,216, two bedrooms were $1,574, and three bedrooms averaged $1,673.

Montreal

The report noted that annual rent in Montreal jumped from 11.2% in June to 15.3% in July, reaching an average of $1,987 for condos and apartment listings.

The city came in 23rd on the rankings of highest rents, with average one-bedroom units priced at $1,756 and average two-bedrooms at $2,221 for July.

Montreal’s apartment and condo units came in at an average price of $1,752 for a one-bedroom, $2,222 for two bedrooms, and $2,539 for three bedrooms.

Read the full report here.

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