Rental prices in Canada reached a new high, with an average asking price of $2,149 per month in October, according to a new report compiled by a Canadian rental listings website(opens in a new tab).
According to Rentals.ca and real estate research firm Urbanation, the Canadian market continued its upward trajectory with data suggesting a monthly increase of 1.5 per cent from August, and an annual surge of 11.1 per cent. Experiencing double-digit year-over-year growth, the annual rate of rent inflation surged to its highest point in nine months, stated the report.
The report’s metrics are based on new listings, not what existing tenants are paying per month. In terms of rental types, one-bedroom units recorded the fastest annual growth in asking rents, soaring by 15.5 per cent, reaching an average of $1,905. Two-bedroom apartments averaged $2,268, marking a 13.1 per cent increase year-over-year, while three-bedroom units were up by 11.4 per cent, averaging $2,514.
Studios, representing 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. Asking rents for purpose-built and condominium apartments averaged a record high of $2,078 in September, increasing 1.6 per cent month-over-month and 13.3 per cent year-over-year. Nova Scotia surpassed Alberta with the average asking rents for apartments by reaching $2,088, while Alberta rose to $1,663. Quebec had the third fastest annual growth with a rate of 13 per cent, followed closely by British Columbia with 12.3 per cent.
In Ontario, the annual rate growth slowed from 9.9 per cent in August to 6.6 per cent in September. Asking rents in the province also declined by 0.4 per cent month-over-month. Yet, despite this glimpse of financial hope, Ontario still has the second highest rent average by province at $2,486. The Prairie provinces remained 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. Saskatchewan’s asking rents averaged $1,115 and $1,431 for Manitoba.