The latest Rentals.ca report released on November 10, 2023, shows that there has been an 11.1% annual rise in the average rental rate and a 1.5% monthly increase in Canada, bringing the new asking rent average to $2,149.
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National Overview:
The Canadian rental market has witnessed significant changes, with an 11.1% annual and 1.5% monthly increase in the average asking rent, bringing it to $2,149.
Vancouver and Toronto, the two largest cities, have the highest average rents, reaching $3,339 and $2,902, respectively, for September 2023.
Between June and September this year, more people in Canada asked about renting places, and the prices went up by 5.1%, around $107 per month on average.
In September, the average asking rent for purpose-built and condominium units reached a historic high of $2,078, marking a 1.6% increase from the previous month and a significant 13.3% rise compared to the same period last year.
Rental Trends by Apartment Type:
Understanding how different apartment types are faring in the market is crucial for both tenants and landlords. Here’s a closer look:
- One-Bedroom Units: This category experienced the fastest annual increase, rising by 15.5% to $1,905. The demand for one-bedroom units remains strong, reflecting a shifting trend in housing preferences.
- Two-Bedroom Apartments: The average rent for a two-bedroom apartment increased by 13.1% from the previous year, reaching $2,268. This indicates a steady demand for larger living spaces.
- Three-Bedroom Apartments: Larger units also saw an 11.4% annual increase, with the average rent for a three-bedroom apartment reaching $2,514. Families and those seeking shared living spaces contribute to this trend.
- Studio Apartments: Studio apartments, known for their affordability, saw an average yearly rent increase of 11.3% to $1,511. This category remains popular among singles and young professionals.
Province-Wise Average Rent:
Understanding the average rent by province provides valuable insights into regional variations. Let’s explore the data in more detail:
British Columbia:
With an average asking rent of $2,656, B.C. stands out as the province with the highest average rent. The demand for housing in this beautiful province continues to drive prices up.
Ontario:
Ontario, with an average rent of $2,486, follows closely behind B.C. Despite a slight decrease in annual growth from 9.9% in August to 6.6% in September, Ontario remains a competitive market.
Nova Scotia and Quebec:
These provinces have recorded high annual rent growth rates of 15.4% and 15.3%, respectively, showcasing the dynamic nature of the Canadian rental market.
Top 25 Cities:
For those considering city living, the top 25 cities provide diverse options. Let’s explore some key data:
- Vancouver: Topping the list with an average rent of $3,339, Vancouver remains one of the most sought-after cities despite its high rental prices.
- Toronto: Following closely, Toronto boasts an average rent of $2,902, making it the second most expensive city for rentals. However, recent data indicates a slowdown in rent growth, with rates decreasing from 8.7% to 2.3% annually.
- Brampton: With an average rent of $2,704, Brampton offers a more affordable option compared to Vancouver and Toronto.
Regional Insights:
Understanding the regional nuances provides a holistic view of the Canadian rental market. Let’s dive into some regional insights:
- Highest Growth Rates: Nova Scotia and Alberta recorded the highest annual rent growth rates, showcasing the diversity of the Canadian real estate market.
- Provincial Leaders: British Columbia with the highest average asking rent and Quebec with a lower-than-national-average rent highlight the vast differences in regional pricing.
- Ontario Slowdown: Despite being a major player, Ontario witnessed a decrease in annual growth from 9.9% in August to 6.6% in September, indicating a potential stabilization in the market.
Rent Trends in Major Cities:
For those eyeing specific cities, understanding the trends within major urban centers is crucial. Let’s explore some key data:
- Calgary: Dominating with a 14.3% yearly increase, Calgary averages $2,091. This growth signifies the city’s resilience in the face of economic challenges.
- Montreal: Montreal sees a 10.2% yearly increase, reaching an average of $2,030. The city continues to experience double-digit rent rises, reflecting its growing popularity.
- Toronto Slowdown: Toronto, despite being one of the major players, experienced a slowdown, with rent growth decreasing from 8.7% to 2.3% annually, marking the lowest rate of increase in the previous two years.
Shared Accommodations:
As shared accommodations become more popular, especially with rising mortgage payments, understanding this segment is vital. Here’s a closer look:
- Increased Listings: Shared accommodation ads have risen by 27% over the previous year, indicating a growing trend among landlords and tenants.
- Regional Breakdown: British Columbia and Ontario saw significant increases of 40% and 78% in shared accommodation listings, respectively.
- Average Monthly Rent: Shared lodgings increased by 18% year over year, reaching $944 in September. This suggests a higher demand for shared living spaces.
