Asking rents jump 8.6% in December to hit record $2,178 on average: report

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This article was published 15/01/2024 (631 days ago), so information in it may no longer be current.

A new report says the average asking price in December for a rental unit in Canada was a record $2,178 per month, relatively flat from the previous month but an 8.6 per cent jump year-over-year.

The data released Monday by Rentals.ca and Urbanation, which analyzes monthly listings from the former’s network, showed the average monthly cost of a one-bedroom unit in December was $1,932, up 12.7 per cent from the same month in 2022.

The average asking price for a two-bedroom was $2,301, up 9.8 per cent annually.

Rents also increased by an average of 8.6 per cent for 2023 as a whole. This followed a 12.1 per cent increase in 2022 and a 4.6 per cent gain in 2021. Asking rents in Canada over the past two years have increased overall by a total of 22 per cent, or an average of $390 per month, according to the report.

Traditional purpose-built rental apartments posted the fastest price growth in 2023 with a 12.8 per cent increase, as rents averaged $2,076. Condominium rentals, with an average rent of $2,340, and home rentals, at $2,354, had slower annual growth of 6.9 per cent and 5.9 per cent, respectively.

Asking rents in December for a one-bedroom unit in Canada’s two most expensive major cities, Vancouver and Toronto, continued to come down on monthly basis.

The west coast city had an average price of $2,700, which was 5.8 per cent lower than November, while the Ontario capital came in at $2,521, 2.8 per cent below the previous month. Despite that, the cities still marked increases on an annual basis of four per cent and 2.6 per cent, respectively.

Alberta had the fastest-growing rents among provinces for purpose-built and condominium apartments in 2023, with a 15.6 per cent annual increase in December to reach an average of $1,691.

Meanwhile, B.C. remained the most expensive province for apartment rents with an average asking rent of $2,500, despite a 1.4 per cent annual decrease. The average apartment rent in Ontario was slightly below at $2,446, increasing 3.7 per cent annually in December.

The report said the rental market in Canada will remain undersupplied in 2024, but there should be more balance, with rent growth expected to be closer to its five-year average of approximately five per cent.

“Rental demand is expected to remain strong, experiencing some moderation compared to 2023 due to a slowing economy, a reduced number of non-permanent residents, and an improvement in homebuying activity as interest rates begin to decline,” it stated.

This report by The Canadian Press was first published Jan. 15, 2024.