Toronto 
Canada’s rental market is grappling with a convergence of factors propelling rents to unprecedented heights, finds the latest National Rent Report from Rentals.ca and Urbanation.
The average asking rents for purpose-built condos and apartments broke the $2,000 barrier in July, reaching $2,008. One-bedroom units witnessed a 13% yearly surge and a 2.5% monthly uptick, averaging at $1,850. Two-bedroom and three-bedroom units followed, with rents averaging $2,191 and $2,413, respectively, while studios maintained more affordability at $1,445.
The record rates are attributed to a culmination of circumstances, including the peak season for leasing, an open border policy encouraging new residents, rapidly increasing incomes, and exceptionally challenging homeownership affordability conditions with Bank of Canada’s latest interest rate increase to a 22-year high.
Here are the highlights of the August 2023 Rent Report:
National Outlook
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- The average asking rent in Canada recorded a new peak of $2,078 in July, reflecting an 8.9% yearly rise.
- This increase was primarily driven by an influx of post-secondary students seeking accommodation, unprecedented population growth, and a spike in the Bank of Canada’s interest rates.
- Purpose-built and condominium apartment rents surpassed $2,000 for the first time, averaging at $2,008.
- One-bedroom apartments witnessed the highest rent growth, with rents averaging $1,850.
Provincial Overview
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- Alberta led the pack with a 15.6% annual rise, reaching $1,578 in July.
- Quebec showcased a notable growth of 13.7%, reaching an average rent of $1,920.
- Ontario’s average rent sat at $2,432, just behind B.C.’s $2,622.
- Manitoba and Saskatchewan experienced monthly declines in rents by 3.2% and 0.7% respectively.
Municipal Overview
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- Among the largest Canadian markets, Calgary and Montreal led with respective average rents of $2,036 and $1,987.
- Vancouver held the title for the priciest average rent at $3,340.
- B.C. dominated the mid-sized market, with North Vancouver, Richmond, Burnaby, and Coquitlam boasting high average rents. Oakville in Ontario showed an impressive 32.1% annual growth, reaching $3,114.
- Greater Montreal’s Laval and Cote Saint-Luc showcased significant growth, with rates surging by 28.5% and 23% respectively.
- B.C.’s Richmond and New Westminster displayed robust annual growth for purpose-built and condominium rents.
- Greater Toronto markets, specifically Brampton and Scarborough, continued to display strong rent growth momentum.
Roommate Rentals
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- The average rent for roommate accommodations in B.C., Alberta, Ontario, and Quebec increased by 16.1% over the past year, averaging $971.
- Quebec witnessed a 23.8% surge, resulting in an average rent of $901.
- Ontario’s roommate rents crossed the $1,000 threshold for the first time, reaching an average of $1,009.
The National Rent Report, compiled by Urbanation using Rentals.ca Network data, offers comprehensive insights into the rental market across national, provincial, and municipal levels, with data from Rentfaster.ca factored in. Urbanation, a Toronto-based real estate research firm, has been providing market analysis and consulting services since 1981.
