In Canada, rental prices have reached a new high with the average asking price of $2,149 per month. According to Rentals.ca and real estate research firm Urbanation, the Canadian market continued its upward trajectory with data wanting a monthly increase of 1.5 per cent from August, and an annual surge of 11.1 per cent.
The report stated that, since it’s experiencing a double-digit year-over-year growth, the annual rate of rent inflation surged to its highest point in nine months.
The report’s metrics are based on new listings, not what present tenants are paying per month. Regarding rental types, one-bedroom units were the fastest annual growth in asking rents, increasing by 15.5 per cent, which reaches an average of $1,905.
Two-bedroom apartments were about $2,268, marking a 13.1 per cent rise year-over-year, while three-bedroom units were up by 11.4 per cent, which is about $2,514. Studios, which are the most economical choice, had the lowest year-over-year growth with an increase of 11.3 per cent, averaging $1,511 in rental prices.
Requesting rents for condominium apartments and purpose-built averaged a high record of $2,078 in September, which increased 1.6 per cent month-over-month and 13.3 per cent year-over-year. Breaking down the data by section, Alberta and Nova Scotia led the provinces in rent growth for both purpose-built and condominium apartments in September, with rates of 15.4 per cent and 15.3 per cent, respectively.
Nova Scotia exceeded Alberta with the average asking rents for apartments by reaching $2,088, while Alberta rose to $1,663. Quebec had the third fastest yearly growth with a rate of 13 per cent, followed closely by British Columbia with 12.3 per cent. In spite of having one of the highest growth rates year-over-year, Quebec’s asking rents were below the national average with $1,970, while B.C. from all provinces had the highest average of $2,656.
In Ontario, the annual rate growth reduced from 9.9 per cent in August to 6.6 per cent in September. Asking rents in the province also reduced by 0.4 per cent month-over-month. The Prairie provinces continued to be the most financially friendly locations as Saskatchewan and Manitoba both had the slowest annual rent growth in September at 3.8 per cent and 3.1 per cent, respectively.
In Canada, while most major markets witnessed robust rent increases, there was a slowdown in Toronto compared to August. The rent growth in Canada’s most populated city slowed from 8.7 per cent to 2.3 per cent, making it the slowest annual rate increase in two years.
Even though every month the average rent prices in Toronto did not change significantly, yet this city still was the second-highest asking rate at $2,902. Right behind Vancouver at an average of $3,339, which is a 7.7 per cent increase year-over-year.
Montreal also had a rent increase in the double-digits at 10.2 per cent, increasing the average asking rent price to $2,030. When it comes to the country’s medium and smaller markets, there was also a significant annual rent growth for purpose-built and condominium rental apartments in September.
In Ontario, Oakville had the fastest annual growth of 19.4 per cent. Within smaller provinces, Regina and Halifax had one of the highest increases at 15.5 per cent and 13.4 per cent, respectively. According to the report data, with regard with prices, four of the five most expensive mid-sized markets in Canada are situated in Greater Vancouver. North Vancouver average asking rent is $3,481, followed by Burnaby at $3,062, Coquitlam at $2,976 and Richmond at $2,940.
Outside of Toronto, Ontario’s most expensive markets include Oakville, averaging $2,960, Brampton ($2,704), Vaughan ($2,697), Mississauga ($2,687), Etobicoke ($2,634), and North York ($2,629). Over the last three months roommate rentals have become more popular and there was a 27 per cent increase compared to last year.
This trend has been mainly pronounced in B.C. and within Ontario, as shared accommodation listings increased by 40 and 78 per cent, respectively. Average asking rents for shared accommodations rose by 18 per cent year-over-year in September, reaching $944 per month. Vancouver had the highest average asking rent at $1,590, while Toronto had $1,308.
