Average rent in Canada hit a new record high in July

The rising cost of living in Canada won’t stop and the average rent across the country is the latest to see a spike.

According to the latest report from Rentals.ca, the average asking rent in Canada reached a new record high of $2,078 in July. Asking rent is the price listed by the landlord before negotiations or discounts.

That’s a 1.8% increase in rent prices over June, which represents the fastest month-0ver-month growth in the past eight months, reads the report.

On top of that, rent has increased 8.9% annually, which is the fastest pace of growth over the past three months.

To put it into perspective, Rentals.ca compared this to prices in July 2021 and found that average asking rents in Canada have risen by 21%, or by $354 per month.

Rentals.ca

“Rents experienced further upward pressure last month as post-secondary students rushed to sign leases ahead of the fall term, the population grew by a record level, and homebuyers moved to the sidelines as the Bank of Canada raised interest rates to a 22-year high,” reads the report.

It suddenly makes sense why some people are resorting to renting half of their bedroom for over $1,000.

Average rents specifically for apartments also hit a new record, reaching $2,008 and thereby surpassing $2,000 for the first time in July, the report found.

One-bedroom rentals averaged $1,850 in July, compared to $2,191 for two-bedroom units, and $2,413 for three-bedroom units.

The cheapest units were studios, with an average rent of $1,445.

These prices are due to an 11.3% year-over-year increase in rent for purpose-built buildings and condos. Month-over-month asking rents were up by 2%.

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Rent ranked by city

Rentals.ca also provided an overview of where major Canadian cities ranked based on average rent.

Vancouver took the top spot for highest rent across the country, with one-bedrooms going for $3,013 a month and two-bedrooms at $3,918.

Toronto follows closely behind with an average rent of $2,592 for a one-bedroom unit.

Rounding out the top three is Burnaby, BC, with an average rent of $2,541 for a one-bedroom unit.

Rentals.ca

Where does your city land on this list?