Rent prices in Canada have increased by 9.7 per cent on average year-over-year in February, according to the latest National Rent Report by Rentals.ca and Urbanation.
This is the first time since June that rents have not increased by double digits, and it marks a slowing trend in rent inflation since it peaked at 12.4 per cent in November. Rents decreased 0.6 per cent from January and have declined 2.0 per cent over the past three months.
The average asking rent for all property types in Canada is currently $1,984.
“The rental market experienced a pullback over the past three months following record-breaking rent growth in 2022,” said Shaun Hildebrand, president of Urbanation.
“The recent slowing can be related to high rental costs impacting affordability and an increase in new supply from apartment completions. However, several key markets experiencing high demand continued to see rents trend higher last month.”
Regional updates
Vancouver once again tops the list of 35 cities for average monthly rent, followed by Toronto.
In February, the average monthly rent for a one-bedroom home in Vancouver was $2,640, while in Toronto, it was $2,501. Both cities saw significant year-over-year increases of 15.3 per cent and 21.5 per cent, respectively.
Montreal remains relatively affordable, where the average monthly rent for a one-bedroom home was $1,623, an increase of 7.1 per cent year-over-year.
In February, Calgary had the fastest-increasing rents among Canada’s largest cities for condo rentals and apartments. Average rents in Calgary rose 28.1 per cent annually and 3.8 per cent over the past three months to $1,862. But Calgary rents remained below the national average, with one-bedrooms at $1,652.
Toronto had the second fastest annual rent growth of 22.8 per cent in February for condo rentals and apartments, despite a 0.9 per cent three-month decline, at $2,838.
Vancouver, which continues to be the most expensive of Canada’s largest markets, saw average rents increase 19 per cent annually for condo rentals and apartments to $3,120 in February.
Average rents in Ottawa, Edmonton and Montreal increased 13.5 per cent, 8.6 per cent and 8.2 per cent, respectively, for condo rentals and apartments in February.
Medium-sized markets
The seven fastest-growing medium-sized markets for purpose-built and condominium rentals were all in southwestern Ontario, with Brampton leading at a 30.1 per cent increase in rent.
The 12 most expensive mid-sized rental markets in February were all in Metro Vancouver and the Greater Toronto Area.
In medium-sized cities, average rents for purpose-built and condominium apartments were highest in February in cities in Metro Vancouver — including Burnaby ($2,902), Coquitlam ($2,726) and Richmond ($2,545) — and cities and areas in the Greater Toronto Area (GTA) — including Oakville ($2,579), Vaughan ($2,579), and Etobicoke ($2,546).
Provincial updates
Ontario led the country with a 16.2 per cent increase in rent year-over-year in February for purpose-built and condominium apartments, followed by Alberta and British Columbia, where annual rents rose 14.5 per cent and 11.4 per cent, respectively.
Over the past three months, rents increased the most in Quebec, up 2.9 per cent and Ontario, up 1.0 per cent, while all other provinces recorded three-month rent declines for purpose-built and condominium apartments.
