Rental listing prices saw a 15.4% annual increase in September 2022, reaching an average of $2,043, according to a new report.
This is the largest year-over-year increase in average rent since April 2019 according to the most recent National Rent Report, compiled by Rentals.ca and Bullpen Research & Consulting. September rents in Canada were also 4.3% higher than the previous month, the largest month-over-month increase since Rentals.ca began reporting in 2018.
The report attributes this most recent increase to the recent completion of new purpose-built rental apartments with larger and more expensive units, as well as significant increases in rental demand.
“Rental demand has increased significantly with continued interest rate hikes, falling owned home prices and changing post-pandemic preferences,” Ben Myers, president of Bullpen Research & Consulting, said in a statement. Press release.
Every province and territory (except Yukon and Nunavut, which were not included in the analysis) saw average rent increases in September 2022. The highest increases were seen in Nova Scotia, where the average rent reached $2,453 across all property types. , up 35.5% over the previous year. The average rent in British Columbia was $2,682, up 31.2%, while the average rent in Ontario rose 18.4% to $2,451.
The cheapest rentals were in Saskatchewan, where the average rent was $1,069 in September. Quebec and Manitoba recorded the smallest year-over-year increases in average rent. In these two provinces, the average rent increased by only 4.7%.
The most expensive city to rent was Vancouver, where a one-bedroom apartment cost an average of $2,590 in September. This was followed by Toronto, where one-bedroom rents were $2,472, and Burnaby, British Columbia, where the average one-bedroom rent was $2,292.
London, Ontario recorded the largest increase in average rent. The city has seen the average rent for a one-bedroom apartment increase by 38.8% in just one year. Calgary saw the average rent for a bedroom increase by 29.0%, making it the city with the second highest increase.
However, despite the increases, Calgary still ranks as the 12th cheapest city to rent among the 35 communities across Canada that were included in the analysis.
While cities in southern Ontario and British Columbia had the highest average rents, cities in the Prairies were among the cheapest. A one-bedroom apartment in Saskatoon costs an average of $980, making it the cheapest city to rent. Laval, Quebec was the least expensive city outside the Prairies, with an average rent of $1,362 for a one-bedroom apartment.
However, the report says there are signs the rental market may be easing, pointing to data that shows pageviews per listing on Rentals.ca have declined. The report also notes that rental demand is seasonal and is generally weaker from November to February.