Rentals.ca has recently released its July 2023 Rent Report, revealing some interesting insights about the Most Expensive Cities to Rent in Canada.
Let’s break down the key findings to give you a clear picture of the rental landscape.
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Record High Rents and Accelerated Growth
In June, the average asking rent in Canada hit a new record high of $2,042. This marked a 0.9% increase from the previous record set in November 2022.
The month-over-month increase in June was the fastest so far this year, contributing to an annual rent inflation rate of 7.5%.
National Overview
Regional Rent Trends
Alberta leads in annual rent growth for the second consecutive month, with rents up 18.3% year over year. British Columbia saw the highest month-over-month rent growth at 3.5%.
Quebec climbed to second place for annual rent growth, pushing Ontario to third. British Columbia remains the most expensive province for renters, followed by Ontario and Alberta.
City-Specific Insights
Calgary’s rents broke the $2,000 mark for the first time, becoming the fourth most expensive city. Vancouver and Toronto maintain their status as the most expensive cities to rent in Canada.
Ottawa’s average rent of $2,146 was accompanied by similar annual rent growth of 15.3%. Montreal, despite being less expensive, experienced steady growth in rents.
Roommate Accommodations
Roommate accommodations saw an average monthly cost of $963 in June, up 15% from the previous year. British Columbia and Quebec witnessed the highest annual growth in roommate rents, at 21% each.
Vancouver topped the list of the most expensive cities to rent in Canada with the highest average roommate rent, followed by Toronto, Ottawa, and Montreal.
Suburban Markets and Rent Growth
Oakville surpassed Toronto in terms of average asking rent for purpose-built and condominium apartments. Richmond emerged as Vancouver’s most expensive suburb, with a 25.7% annual rent increase.
Brampton took the second spot for the fastest annual rent growth, with an increase of 25.8%. Scarborough maintained its growth leader status with a substantial 27.8% annual rent increase.
Understanding the Data
The data from the Rentals.ca Network of ILS provides insights into both primary and secondary rental markets.
CMHC’s data focuses on purpose-built rental units and rental townhouses, while Rentals.ca’s data covers a wider range.
The differences in data collection and inclusion of various property types lead to variations in reported rental rates.
List Of Most Expensive Cities To rent in Canada
1. Vancouver, BC:
Known for its stunning natural beauty, Vancouver is one of the most expensive cities to rent in Canada with high rental prices.
- 1 Bedroom: Monthly rent averages at $2,945.
- 2 Bedroom: Monthly rent averages at $3,863.
2. Burnaby, BC:
With high rental costs, Burnaby ranks 2nd in the list of most expensive cities to rent in Canada.
- 1 Bedroom: Monthly rent averages at $2,578.
- 2 Bedroom: Monthly rent averages at $3,314.
3. Toronto, ON:
As Canada’s largest city, Toronto’s rental market reflects its urban status. With high rental rates, it is one of the most expensive cities to rent in Canada.
- 1 Bedroom: Monthly rent averages at $2,572.
- 2 Bedroom: Monthly rent averages at $3,301.
4. Mississauga, ON:
A suburban city near Toronto, Mississauga still commands high rental fees.
- 1 Bedroom: Monthly rent averages at $2,362.
- 2 Bedroom: Monthly rent averages at $2,821.
5. Etobicoke, ON:
Etobicoke, another Toronto suburban city, maintains its place in the list of Most expensive cities to rent in Canada.
- 1 Bedroom: Monthly rent averages at $2,263.
- 2 Bedroom: Monthly rent averages at $2,914.
6. Vaughan, ON:
Located just north of Toronto, Vaughan also ranks among the most expensive cities to rent in Canada.
- 1 Bedroom: Monthly rent averages at $2,250.
- 2 Bedroom: Monthly rent averages at $2,690.
7. North York, ON:
As part of Toronto, North York continues to hold its position in the expensive cities to rent in Canada list.
- 1 Bedroom: Monthly rent averages at $2,226.
- 2 Bedroom: Monthly rent averages at $2,705.
8. Burlington, ON:
Burlington offers a comfortable lifestyle but comes with higher rental expenses.
- 1 Bedroom: Monthly rent averages at $2,215.
- 2 Bedroom: Monthly rent averages at $2,575.
9. Brampton, ON:
Brampton, a suburb of Toronto, maintains its position among the pricier rental cities.
- 1 Bedroom: Monthly rent averages at $2,148.
- 2 Bedroom: Monthly rent averages at $2,486.
10. Scarborough, ON:
Completing the list, Scarborough still reflects higher rental rates in its suburban setting.
- 1 Bedroom: Monthly rent averages at $2,142.
- 2 Bedroom: Monthly rent averages at $2,545.
Why the High Costs?
Several factors contribute to these cities’ high rental prices, including demand, location, and local economies. Cities like Vancouver and Toronto are attractive for their job opportunities, cultural scene, and amenities, driving up demand and consequently pushing rental costs higher. Additionally, limited housing supply in popular areas can further escalate prices.
Conclusion
The July 2023 Rent Report by Rentals.ca tells us about the most expensive cities to rent in Canada. From record-high rents to regional variations and city-specific insights, this report provides valuable information for both renters and property owners.
As the market continues to evolve, staying informed about these trends can help you make well-informed decisions regarding your rental properties or accommodation choices.
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