Asking Rents in Canada Increased by 10 per cent in February 2024: Report

According to the latest National Rent Report by Rentals.ca and Urbanation, average asking rent for all property types increased 10.5 per cent annually to $2,193, the fastest annual growth since September 2023.

In comparison to February 2022, which was right before the onset of interest rate increases by the Bank of Canada, average asking rents in Canada have increased by 21 per cent, which translates to a $384 per month increase, according to the report.

“The rapid rate of rent growth in Canada is unrelenting,” said Shaun Hildebrand, president of Urbanation. “While some markets are experiencing a softening in rents, others are seeing an acceleration, with an underlying theme that rental supply remains grossly insufficient to meet current levels of demand.”

According to the report, purpose-built rental apartments saw a 14.4 per cent annual growth, reaching an average of $2,110 in February.

The report noted that condominium rental apartments saw a 5.0 per cent year-over-year increase, with average asking rents of $2,372, while apartments in houses averaged asking rents of $2,347, rising by 5.3 per cent annually.

The provinces of Ontario and British Columbia posted the slowest growth in asking rents for purpose-built and condo apartments at the provincial level in February, according to the report, with annual increases of 1.0 per cent and 1.3 per cent.

Alberta, however, remained the province with the fastest-growing rents. It also witnessed average asking rents for apartments increase by 20.0 per cent annually, with one-bedroom apartment asking rents growing by 20.4 per cent to an average of $1,531, and two-bedroom apartment asking rents increasing by 18.8 per cent annually to $1,886, according to the report.

The report noted that Vancouver and Toronto saw declines in asking rents compared to a year ago. The average asking rent for purpose-built and condo apartments decreased by 3.3 per cent annually in Vancouver and 1.3 per cent annually in Toronto, reaching $3,017 and $2,803.

Edmonton posted annual growth of 17.3 per cent to reach an average of $1,489 for purpose-built and condo apartments, according to the report.

The report noted that Quebec led rent growth among small-to-mid-sized cities, with increases observed in Pointe-Claire, while Lloydminster led rent growth in Alberta and Langley saw the fastest rising rents in B.C.

In terms of shared accomodations, average asking rents rose by 12 per cent annually to $1,010, led by significant growth in B.C. and Alberta, according to the report.