National Average Rents in February Rise By 9.7 per Cent; Calgary Sees Fastest Rental Increase For Condos

The average asking rent for all types of properties in Canada rose 9.7% year over year in February, finds the National Rent Report by Rentals.ca and Urbanation.

The average asking rent for all types of properties is now $1,984.

According to the report, average rents did not increase by double digits for the first time since June, indicating a moderating annual rate of rent inflation since reaching a high of 12.4% in November. However, rents decreased by 0.6% from January and declined by 2% over the past three months.

“The rental market experienced a pullback over the past three months following record-breaking rent growth in 2022,” said Shaun Hildebrand, president of Urbanation in a news release.

Credit:Rentals.ca and 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.”

These are the highlights of February rental report:

Vancouver topped the list of 35 Canadian cities for average monthly rent.
In February, average monthly rent for a one-bedroom home in Vancouver was $2,640 and $3,632 for a two-bedroom.
Year over year, average monthly rent for a one-bedroom in Vancouver was up 15.3% and up 22.5% for a two-bedroom.
Month over month, average rent was down 3.3% for a one-bedroom in Vancouver in February but up 0.2% for a two-bedroom.
Toronto finished second on the list of 35 cities for average monthly rent in February.
The average monthly rent for a one-bedroom in Toronto was $2,501 and $3,314 for a two-bedroom.
Year over year, average monthly rent for a one-bedroom in Toronto was up 21.5%, and for a two-bedroom, it was up 19.4%.
Montreal came in 25th for average monthly rent for a one-bedroom home in February at $1,623 and 20th for a two-bedroom at $2,139.
Year over year, average monthly rent for a one-bedroom in Montreal was up 7.1%, and for a two-bedroom, it was up 7.9%.
Among the 35 cities analyzed, Quebec City, Lethbridge, Red Deer, Edmonton, Saskatoon, Regina and Grande Prairie have the lowest rents for one bedroom and two-bedroom houses in the country.

Home Rentals; Credit:Rentals.ca and Urbanation.

Condos and Apartments

Calgary had the fastest increasing rents among Canada’s largest cities in February for condominium rentals and apartments.
Average rents in Calgary rose 28.1% annually and 3.8% over the past three months to $1,862.
Toronto had the second fastest annual rent growth of 22.8% in February for condominium rentals and apartments.
Average rents in Toronto were well above the national average.
Vancouver saw average rents increase 19% annually for condo rentals and apartments to $3,120 in February.
Average rents in Ottawa, Edmonton, and Montreal increased 13.5%, 8.6%, and 8.2%, respectively, in February for condo rentals and apartments.
The seven fastest-growing medium-sized markets for purpose-built and condominium rents in February were all in southwestern Ontario.
In medium-sized cities, average rents for purpose-built and condominium apartments were highest in February in cities in Metro Vancouver and the Greater Toronto Area.
Ontario led the country with a 16.2% increase in rent year over year in February for purpose-built and condominium apartments.
Alberta and British Columbia followed with annual rent increases of 14.5% and 11.4%, respectively.
Quebec and Ontario saw the highest rent increases over the past three months, at 2.9% and 1%, respectively.
All other Canadian provinces recorded three-month rent declines for purpose-built and condominium apartments.
British Columbia had the highest average rent for purpose-built and condominium apartments in February, at $2,449.
One-bedroom apartments in British Columbia had an average rent of $2,076, two-bedroom apartments at $2,802, and three-bedroom apartments at $3,233.
Ontario had the second-highest average rent, at $2,407.
Quebec had the third-highest average rent, but it was significantly lower than Ontario and British Columbia, at $1,808.
Although Alberta rents have increased over the past year due to the highest levels of interprovincial migration in Canada, they remain comparatively low, with an average rent of $1,424.