Rental prices in Canada have reached new highs with an average asking price of $2,149 per month, according to a new report compiled by . Canadian rental property information website.
The Canadian market continues its upward trajectory, with data suggesting a 1.5% monthly increase since August and an 11.1% jump for the year, according to Rentals.ca and real estate research firm Urbanation.
Experiencing double-digit year-on-year growth, annual rent inflation soared to a nine-month high, the report said.
The report’s metrics are based on new properties, not what existing tenants are paying per month.
By rental type, one-bedroom units recorded the highest annual asking rent growth, jumping 15.5% to an average of $1,905.
Two-bedroom apartments averaged $2,268, up 13.1% year over year, and three-bedroom units averaged $2,514, up 11.4%.
The most economical option, studios, had the lowest year-over-year growth at 11.3%, with an average rental price of $1,511.
The average asking rent for private apartments and condominiums in September was a record high of $2,078, an increase of 1.6% month-on-month and 13.3% year-on-year.
Nova Scotia and Alberta lead rent growth
Breaking down the data by region, Nova Scotia and Alberta led the provinces in rent growth for both private apartments and condos in September, at 15.4 per cent and 15.3 per cent, respectively.
Nova Scotia surpassed Alberta with average asking rent for apartments reaching $2,088, while Alberta’s average asking rent rose to $1,663.
Quebec had the third highest annual growth rate at 13%, closely followed by British Columbia at 12.3%.
Despite having one of the highest year-over-year growth rates in the country, asking rents in Quebec remain below the national average at $1,970, while British Columbia’s average is $2,656, lower than all provinces. It was the highest among them.
In Ontario, annual growth slowed to 6.6% in September from 9.9% in August. Asking rents in the state also fell by 0.4% from the previous month. But despite these glimmers of economic hope, Ontario still has the second-highest average rent by province at $2,486.
The Prairies remained the most economically advantaged region, as Saskatchewan and Manitoboa both had the lowest annual rent growth in September at 3.8 per cent and 3.1 per cent, respectively.
The average asking rent in Saskatchewan was $1,115, and in Manitoba it was $1,431.
Toronto rental market slows, Vancouver grows
While most major markets across Canada saw significant rent increases, Toronto saw a notable slowdown compared to August. Rent growth in Canada’s most populous city slowed from 8.7 per cent to 2.3 per cent, the slowest annual increase in two years.
Toronto’s average rental price didn’t change much month-over-month, but the city still has the second-highest asking rate at $2,902. Just behind Vancouver, he averaged $3,339, an increase of 7.7% year over year.
Among Canada’s largest markets, Calgary maintained its lead in annual growth with asking rents reaching an average of $2,091 in September, or an increase of 14.3 per cent.
Montreal also saw double-digit rent increases of 10.2%, with the average asking rent rising to $2,030.
Regarding the domestic small and medium-sized market, annual rents for purpose-built rental apartments and condominium rental apartments rose significantly in September.
Richmond, British Columbia, part of Greater Vancouver, had the highest growth rate at 28.9%, followed by Côte-Saint-Luc, Que., part of Greater Montreal, at 27.5%, and Red Deer, Alta., 21.8%. %.
In Ontario, Oakville had the highest annual growth rate at 19.4%.
Among smaller provinces, Halifax and Regina had the highest growth rates at 15.5% and 13.4%, respectively.
In terms of prices, four of Canada’s five most expensive mid-sized markets are located in Greater Vancouver, according to the report’s data. The average asking rent in North Vancouver is $3,481, followed by Burnaby at $3,062, Coquitlam at $2,976 and Richmond at $2,940.
Ontario’s most expensive markets outside of Toronto include Oakville ($2,960 average), Brampton ($2,704), Vaughan ($2,697), Mississauga ($2,687), Etobicoke ($2,634), and North York ($2,629). And so on.
Roommate rentals continue to skyrocket
Rental reports show that roommate rentals are becoming more popular. Over the past three months, it has increased by 27% compared to last year.
This trend was particularly strong in British Columbia and Ontario, where the number of shared accommodation listings increased by 40 per cent and 78 per cent, respectively.
The average asking rent for shared accommodation in September rose 18% year-on-year to $944 per month. Vancouver had the highest average asking rent at $1,590, followed by Toronto at $1,308.