Rental prices in Canada climb more than 20% over last two years
As of February, Canadians were paying an average of $2,193 a month in rent — a 21% increase (or $384 per month) since the Bank of Canada started raising interest rates in 2022.
A new report by Rentals.ca and Urbanation reveals that rent increased by 10.5% in the past year, which was the “fastest rate of annual growth since September 2023.”
Rental increases vary by property type
Even though rent for apartments is up by 14.4%, it’s still the lowest at an average of $2,110. Rent for houses went up by 5.3% at an average asking rent of $2,347. Although condos saw the lowest increase at 5%, it’s the most expensive type of property to rent, with a monthly average of $2,372.
The rent for a three-bedroom condo apartment actually saw the lowest increase, at an average of $2,619 (a 9.9% increase), followed by a two-bedroom, which was up by 11.7%, at an average of $2,350. It was even more expensive to rent a one-bedroom this year, with an average rent of $1,954, which was up by 13.4%. But perhaps more surprising was the fact that studio apartments saw the sharpest rise at 14.8%, with an average rent of $1,589.
The nationwide effect
BC and Ontario still top the list with the highest average rents at $2,481 and $2,431, respectively, as of March. But in the past year, they actually showed the “slowest growth” in rental increases, at just 1% and 1.3%.
Residents in Alberta saw the sharpest increase at a staggering 20% annually as of February: rent for a one-bedroom apartment went up by 20.4% to an average of $1,531, while a two-bedroom apartment costs $1,886, an 18.8% increase.
But if you’re looking for the most affordable place to live in, Saskatchewan might be a viable option.
Although the average rent in the province was up by 15.8%—only second to Alberta—it still has the lowest average rent, and a one-bedroom apartment costs an average of $1,187 and a two-bedroom apartment costs $1,352.
Vancouver and Toronto remain most expensive markets
Urbanation and Rentals Network Data Research
Perhaps not surprisingly, Vancouver and Toronto are still among the most expensive cities for renters. With rent at a staggering average of $3,017 a month, Vancouver takes the top spot, with Toronto coming in third with an average monthly rent of $2,803.
Despite this, rent decreased by 3.3% in Vancouver and 1.3% in Toronto.
According to the report, Edmonton tops the list with the highest average rent growth at 17.3% at an average of $1,489 monthly.
With rent going up, it’s no wonder that the number of roommate listings in four provinces surged by 72% in February compared to a year ago, which leads to the question: how can the average Canadian afford to live?
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