Rent prices stabilize in parts of Canada while Alberta takes off
As rental costs in Canada rise to all-time highs, some of the priciest areas of the nation are seeing prices stabilize, but cities in Alberta are taking off.
Rentals.ca just released its June 2024 Rent Report, which compares the cost of rent in 35 cities across Canada.
The average asking rent for all residential property types in Canada hit an all-time high of $2,202 last month, surpassing the $2,200 level for the first time, the report says.
Cities in Ontario and BC made up the entire top 10 of the highest rent prices in Canada. In Vancouver, the most expensive city for renters, an average one-bedroom apartment totalled $2,671 last month.
Rentals.ca
While the costs are still astronomical, the asking price for a one-bedroom in Vancouver has dropped 5.6% compared to last year. That hasn’t been the case in Alberta.
“Edmonton continued to pull away as the leader in rent growth among Canada’s largest cities, posting a 14.6% annual increase in asking rents for apartments,” Rentals.ca said.
The average asking price for a one-bedroom in YEG, the 30th most expensive city for renters, is now $1,367. In Calgary, the 24th most expensive city, rent prices hit $1,733, a 6.2% increase over last year.
Price gains in Alberta’s small and mid-sized cities have been even greater. The City of Lloydminster maintains its lead as the city with the fastest rising rents in Canada, with asking rents for apartments up 29.3% from a year ago.
Rentals.ca
However, the average asking price for a one-bedroom in Lloydminster is $1,150, which is still 46% below the national average.
Alberta is one of a handful of Canadian provinces that does not have a rent control policy, and there are no limits to how much a landlord may increase the rent. However, there are some rules in the Residential Tenancies Act on how and when rent can be increased.
In neighbouring BC, rent control policies limit annual rent increases for tenants, currently capped at 3.5%. However, when a renter leaves a unit, there are no legal limits on how much a landlord can increase the price for a new renter.