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Average rents rise almost 12% annually in Canada

Rents continue to surge in most cities across Canada. 

Average rents rose 11.8 per cent year-over-year in October in Canada to an average of $1,976 across all property types, according to the National Rent Report from Rentals.ca and Urbanation.

Rents charged last month averaged $209 per month higher than in the same month a year ago ($1,767). And average rents were $130 per month higher than the pre-pandemic high in October 2019 ($1,845). Month over month, average rents increased 2.2 per cent over September. The latest annual rent increase was more than double the annual increase in average hourly wages of employees in Canada at 5.6 per cent, as reported by Statistics Canada for October.

Since March, when interest rates began to rise, the average rent in Canada has increased by 9.2 per cent, which compares to a nearly equivalent 9.9 per cent decline in benchmark resale prices between March and October, according to CREA.

“The unprecedented growth in rents underway is broad-based across Canada, with most markets reporting double-digit annual rent inflation,” said Shaun Hildebrand, president of Urbanation. “The rental market keeps getting hotter with each interest rate increase, coupled with a record-high increase in the population. The need to ramp up rental supply has never been greater.” 

Vancouver once again tops the list of 35 cities for average monthly rent. In October, the average monthly rent in the city for a one-bedroom home was $2,576, and the average monthly rent for a two-bedroom was $3,521. Year-over-year, the average monthly rent in October for a one-bedroom in Vancouver was up 17.2 per cent and 16.1 per cent for a two-bedroom. 

Toronto finished second on the list of 35 cities for average monthly rent in October for a one-bedroom at $2,478 and second for average monthly rent for a two-bedroom at $3,319. Year-over-year, the average monthly rent in October for a one-bedroom in Toronto was up 23.7 per cent and 23.8 per cent for a two-bedroom. 

The third most expensive of Canada’s largest markets is Ottawa, where rents surged 7.6 per cent month over month in October to an average of $2,146. 

Montreal came in 25th for average monthly rent in September for a one-bedroom home at $1,544 and 23rd for a two-bedroom at $1,986. Year-over-year, the average monthly rent for a one-bedroom in Montreal was up 2.9 per cent and up 3.4 per cent for a two-bedroom.

Montreal and Calgary rents have converged at averages of $1,756 and $1,717, respectively, while Edmonton remained the most affordable of Canada’s largest markets with an average rent of $1,273.

For mid-sized markets, year-over-year average rents in October for condominium rentals and apartments grew most in London and Kitchener, with annual increases of 26 per cent and 24 per cent, respectively. Halifax followed with average rents rising 21 per cent annually. 

Average rents for condo rentals and apartments in MississaugaVictoria and Hamilton increased in October by 18.5 per cent, 14.9 per cent and 12.7 per cent, respectively.

The most affordable of the mid-sized markets were Quebec City and Winnipeg, which also had the slowest annual rent growth of 9.9 per cent and 5.2 per cent, respectively.

The National Rent Report charts and analyzes monthly, quarterly and annual rates and trends in the rental market on a national, provincial, and municipal level.

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