List prices for rental homes rose 15.4% annually in September 2022, reaching an average of $2,043, a new report shows.
This is the highest average annual rent increase since April 2019 according to the most recent National Rent Report, compiled by Rentals.ca and Bullpen Research & Consulting. Rents in September across Canada were also 4.3% higher than the previous month, the highest monthly increase since Rentals.ca began publishing its report in 2018.
The report attributes this most recent increase to the recent completion of new purpose-built rental units with larger and more expensive units, as well as a significant increase in rental demand.
“Rental demand has increased significantly as interest rates continue to rise, home prices fall and preferences change after the pandemic,” said Ben Myers, president of Bullpen Research & Consulting.
Each province and territory (except Yukon and Nunavut, which was not included in the analysis) saw average rents increase in September 2022. The highest increases were seen in Nova Scotia, where median rents increased. $2,453 across all real estate categories, up 35.5% year over year. The median rent in BC was $2,682, up 31.2 percent, while Ontario’s median rent rose 18.4 percent to $2,451.
The cheapest rentals can be found in Saskatchewan, where the median rent was $1,069 in September. Quebec and Manitoba saw the smallest increase in average annual rents. In both these provinces, the average rent increased only 4.7%.
The most expensive city to rent is Vancouver, where a one-bedroom apartment listed for an average of $2,590 in September. This is followed by Toronto, where one-bedroom rents are at $2,472, and Burnaby, BC, where the median one-bedroom rent is $2,292.
London, Ont., had the highest average rent growth. The city has seen the average rent for a one-bedroom apartment increase by 38.8% in just one year. Calgary saw a 29.0% increase in median rents for one bedroom, making it the second-highest increase in the city.
However, despite the increase, Calgary still ranks as the 12th cheapest city to rent out of the 35 communities across Canada included in the analysis.
While cities around southern Ontario and British Columbia have the highest median rents, cities in the Prairies are among the cheapest. A one-bedroom apartment in Saskatoon costs an average of $980, making it the cheapest city to rent. Laval, Que., is the cheapest city outside the Prairies, with an average rent of $1,362 for a one-bedroom apartment.
However, the report says there are signs that the rental market could ease, pointing to data showing a drop in pageviews per listing on Rentals.ca. The report also notes that rental demand is seasonal and generally lower from November to February.
