The report reveals average rents for all property types in Canada on the Rentals.ca Network have increased by 20 per cent, translating to an average monthly increase of $341.

Rising rents across Canada

In June, average rents experienced a month-over-month rise of 1.4 per cent, marking the highest increase this year. On an annual basis, average rents rose by 7.5 per cent.

The National Rent Report attributes the continuous upward trajectory in average rents to several factors, including the country’s growing population and immigration rates. With Canada’s population now exceeding 40 million, the demand for rental properties is soaring. Additionally, the Bank of Canada’s interest rate hike on Wednesday of 25 points to 5.0 per cent further compounds the challenges faced by potential homebuyers.

Shaun Hildebrand, president of Urbanation, highlighted the correlation between population growth and rising rents, stating, “It’s no coincidence that cities with the fastest population growth are at the top of the list for rent increases.” Hildebrand also emphasized the expected pressure on rents in the near future as the market reaches its peak period and the demand continues to outstrip new supply.

Vancouver retains the top spot

Once again, Vancouver claims the top position as the city with the highest average monthly rent in Canada. In June, the average monthly rent for a one-bedroom home in Vancouver stood at $2,945, while a two-bedroom home averaged $3,863. Compared to the previous year, average monthly rents in Vancouver increased by 18.1 per cent for one-bedroom homes and 14.2 percent for two-bedroom homes. 

Month-over-month, average rents in Vancouver saw a 4.0 per cent rise for one-bedroom homes and a 5.4 percent increase for two-bedroom homes.

Toronto drops to third place

Toronto, historically known for its high rental prices, finished third on the list of 35 cities for average monthly rent in June. A one-bedroom home in Toronto had an average monthly rent of $2,572, while a two-bedroom home averaged $3,301. This is the first time Toronto has not been either number one or two on National Rent Report. Burnaby, B.C., surpassing Toronto, finished second in average rents for both one-bedroom and two-bedroom homes.

Year-over-year, Toronto experienced a 14.1 per cent increase in average monthly rent for one-bedroom homes and an 8.8 per cent increase for two-bedroom homes.

Rents in Canada’s largest markets

In June, Calgary’s average rents for purpose-built and condominium apartments exceeded $2,000 for the first time, reaching $2,008 and reflecting an 18.4 per cent increase compared to the previous year. 

Calgary has now surpassed Montreal, becoming the fourth most expensive city for renters among Canada’s major cities. Vancouver and Toronto continue to hold the title of the country’s most expensive rental markets, with average asking rents of $3,301 and $2,813, respectively, and annual rent increases of 15.4 per cent and 15.7 per cent in June. 

Ottawa, the third most expensive of Canada’s largest markets with an average rent of $2,146 in June, saw similar annual rent growth of 15.3 per cent for purpose-built and condominium apartments. Montreal’s average rent for such properties rose by 11.2 per cent annually, amounting to $1,931 in June.

Midsize markets in the GTA see sharp rent increases

Oakville, a suburb in the Greater Toronto Area (GTA), maintained its position as the most expensive midsize market for renters, with an average rent of $3,230 for purpose-built and condominium apartments. 

Among the 25 mid-sized markets in Canada, nine GTA cities and areas experienced the highest year-over-year rent increases in June for these property types. Scarborough saw average annual rents rise by 27.8 per cent to $2,511, followed by Brampton at 25.8 per cent ($2,620), North York at 21.4 per cent ($2,612), Markham at 20.6 per cent ($2,669), Richmond Hill at 18.4 per cent ($2,679), Mississauga at 17.1 per cent ($2,646), Vaughan at 15 per cent ($2,537), Burlington at 14.7 per cent ($2,561), and Etobicoke at 14.2 per cent ($2,630).

Increasing costs for roommate accommodations

The report also revealed a steady rise in rent prices for roommate accommodations in British Columbia and Quebec, which experienced a 21 per cent increase year over year, reaching $1,157 and $980, respectively, in June. Ontario witnessed an average roommate rent of $996, while Alberta averaged $808. Among the cities, Vancouver had the highest average roommate rent of $1,454, followed by Toronto at $1,288, Ottawa at $947, and Montreal at $927.