The median sales price of a rental unit in Canada hit $2,178 last month, up 9.9 per cent year-over-year and continuing a trend that has seen sales rents hit new highs for six consecutive months.
This is according to the latest rental price report published by Rentals.ca and Urbanation that analyzes monthly listings from the former’s network. The findings show that while the annual rate of rent growth in Canada in October was lower than the 11.1 per cent increase in September, it still marked the second-fastest annual increase in the past seven months.
On a monthly basis, average asking rents increased 1.4 percent in October, a slight decline from monthly gains of 1.5 percent in September and 1.8 percent in August, which was attributed to seasonal factors.
The average cost of a one-bedroom unit in October was $1,906, up 14 percent from the same month in 2022, while the average sales price of a two-bedroom unit was $2,255, an 11 percent year-over-year increase. 8 percent, according to the report.
Vancouver once again led the way as Canada’s most expensive city for renters, with the average one-bedroom unit listed at $2,872 and a two-bedroom at $3,777, both below September asking prices but up from 6.7 percent and 5.5 percent, respectively. annually.
Toronto was the next major city at $2,607 for a one-bedroom and $3,424 for a two-bedroom.
The report says rent inflation in Canada is being driven by price increases in Alberta, Quebec and Nova Scotia, in part due to strong population growth and large injections of new rental supply priced above the market average.
“People have almost run out of options”
“I get asked all the time, ‘How can people afford this?’ The answer is no,” said Rentals.ca spokesperson Giacomo Ladas.
“Rents are going up so much that people have almost no options. They are desperately looking for more affordable rentals.”
Of Canada’s largest cities, Calgary topped the list in annual apartment rent growth for the ninth consecutive month.
Asking rents for purpose-built apartments and condominiums in Calgary increased 14.7 per cent year-over-year to reach an average of $2,093, while Montreal came in second with annual rent growth of 10.2 per cent, for an average of $2,046 in October. , show the data.
“We can say that because there is so much interprovincial migration that people are leaving areas like Ontario and British Columbia for more affordable rentals and going to places like Calgary,” Ladas said.
He noted that a major factor driving up rental prices is the trend of fewer and fewer people seeking to become homeowners, given the current climate of high interest rates. One-third of Canadian households are renters, whose rate is growing twice as fast as homeowners, she added.
“People aren’t moving out and getting into the homeownership market because they can’t handle these rates,” he said.