The Canadian rental market in 2024 continued its upward trajectory last month, with rents in Saskatchewan cities also joining the list of cities with high year-over-year increases, according to the latest National Rent Report by Rentals.ca and Urbanation.
In January 2024, the Canadian rental market witnessed a significant rise in average asking rents, reaching a new high of $2,196 for all property types, marking a 10% annual increase and a 0.8% rise from the previous month.
Rentals.ca says this rent escalation signifies a 20% hike since January 2020, prior to the COVID-19 lockdowns, resulting in an additional $373 per month for renters.
One of the report’s main takeaways is that while rents declined rents in high-cost areas like Vancouver, the more affordable markets across the country saw a significant increase, reflecting a deepening rental supply crisis. While rents in Regina and Saskatoon remain one of the lowest in the country, the annual rate of increase in Saskatchewan’s biggest cities is one of the highest along with cities in Nova Scotia and Alberta.
“The Canadian rental market began 2024 where it left off in 2023, with rents surging to new highs,” said Shaun Hildebrand, President of Urbanation in a news release.
“However, an underlying narrative has emerged between softening rents in expensive markets and strengthening rents in more affordable markets. These shifts in demand are symptomatic of a worsening supply situation for rentals in Canada.”
Key findings from the report include:
- Purpose-built rental apartments saw the highest growth rate, with average rents increasing 13.5% year-over-year to $2,107.
- Condominium rentals experienced a 4.1% increase, reaching an average rent of $2,372.
- House rentals went up by 5.6%, averaging $2,352.
- One-bedroom apartment rents rose by 13%, reaching an average of $2,146.
- Rents for two-bedroom units in purpose-built and condominium rentals climbed 11.0% to an average of $2,334.
- Three-bedroom and studio apartments saw increases of 11.6% and 11.8%, respectively.
Regional highlights:
- British Columbia remains the most expensive province, with average rents at $2,529, though it saw the slowest growth rate.
- Ontario’s rents increased by 4.9%, with one-bedroom apartments averaging $2,239.
- Nova Scotia, Alberta, and Saskatchewan led in rent growth, with notable increases of 19.1%, 17.8%, and 17.5% respectively.
City-specific data:
- Vancouver remains the priciest city, despite a 3.0% decrease in rents, averaging $3,055.
- Edmonton surpassed Calgary with the fastest rent growth at 17.1%, with average rents at $1,479.
- Ottawa’s rents surged by 9.1% to an average of $2,219.
- The top 10 most expensive markets in smaller Canadian cities were dominated by locations in Greater Vancouver and Greater Toronto, with North Vancouver leading at $3,208.
Roommate Rentals:
- A steep 18.5% annual increase in roommate rents across Ontario, Quebec, Alberta and B.C. set a new record average of $1,010 in January.
- Vancouver and Toronto topped the list for the highest roommate rents, at $1,338 and $1,311, respectively.
Credit: National Rent Report
The National Rent Report analyzes monthly, quarterly, and annual rental market rates and trends on a national, provincial, and municipal level across all listings on the Rentals.ca Network for Canada. Urbanation, a Toronto-based real estate research firm, analyzes Rentals.ca Network data and writes the report.