March 14, 2023
Market Trends
RYPM
After a year of record-breaking price growth, Canada’s
rental market is showing slight signs of moderating. But rent prices remain
excessively high in major markets.
According to the latest National Rent Report from Rentals.ca and Urbanation, the average
asking rent for all property types in Canada hit $1,984 in February, a 2%
decline since November. Despite representing a 9.7% annual increase, it’s the
first time since June 2022 that average rents have not risen by double digits.
However, the figure it still up 17.5% from 2021 levels, and is 11.1% above
pre-pandemic figures.
“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.”
In Toronto, the average rent for a one-bedroom hit $2,501 in
February, an annual increase of 21.5%. A two-bedroom in the city now costs
$3,314 per month, a year-over-year increase of 19.4%
The average rent for a one-bedroom in Vancouver rose 15.3%
annually, to $2,640, while the average rent for a two-bedroom was up 22.5% year
over year, to $3,632. The city’s sky-high rents made it the most expensive
market in Canada.
Of the 35 cities included in the report, Langley saw the
greatest annual increase amongst one-bedroom units in February, with prices up
25.3% to $1,880, while Kitchener experienced the largest price growth for
two-bedroom units, which were up 25.5% annually to $2,406.
Amongst purpose-built and condominium rental apartments,
Ontario had the highest annual rent inflation in February, at 16.2%. Alberta
and British Columbia followed, with rents rising 14.5% and 11.4% year over
year, respectively. Over the last three months, though, Quebec experienced the
highest rent increase, at 2.9%. Ontario experienced a 1% increase, while all
other provinces saw rents fall over the same period.
Nationally, the average asking rent for purpose-built and
condo apartments was up 9.1% annually in February to $1,908.
Although prices remain below the national average, Calgary
has experienced the fastest rent growth of Canada’s large markets. Average asking
rents in the city hit $1,862 in February, a three-month increase of 3.8% and an
annual jump of 28.1%.
On a yearly basis, Toronto experienced the second-fastest
rent growth amongst large markets, at 22.8%. Rents reached an average of $2,838
in February. Average rents for purpose-built and condo apartments in Vancouver
were up 19% annually, to $3,120.
Amongst mid-sized rental markets, 12 of the most expensive
cities were located in Metro Vancouver and the Greater Toronto Area in
February, including Burnaby($2,902), Coquitlam ($2,726), Oakville ($2,579), and
Vaughan ($2,479).
Of the 10 mid-sized markets with the fastest annual rent
growth, eight were in Southwestern Ontario. Brampton led the rise, with a 30.1%
yearly increase, followed by Kitchener (28.2%) and Scarborough (28.1%).
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