Canada’s Average Asking Rent Hits Record High of Nearly $2,200 in January

Stay informed on the latest trends in Canada's rental market as the average asking rent reaches a new peak, surpassing $2,200 in January.

The rental market in Canada continues to experience upward pressure on prices, with the average asking rent hitting a new record high of nearly $2,200 in January. According to the latest report from Rentals.ca, average rent prices increased by 0.8% month-over-month, resulting in a significant annual gain of 10%. Since pre-COVID levels, rents have surged by 20%, equating to an average increase of $373 per month.

Canada's Average Asking Rent Hits Record High of Nearly $2,200 in January

Among different property types, purpose-built rental apartments saw the most significant rise in prices, with asking rents climbing by 13.5% over the past year to an average of $2,107 per month. House rental prices also saw a notable increase of 5.6% to $2,352, while condominium rentals experienced a 4.1% uptick to $2,372.

The Canada Mortgage and Housing Corporation's 2024 Rental Market Report highlighted a key reason for the escalating rent prices - a shortage of available purpose-built rental apartments. The report noted that the vacancy rate had dropped to a two-decade low of 1.5% in early October, down from 1.9% the previous year. Despite an increase in supply, it was insufficient to meet the surge in demand driven largely by record population growth.

Among Canada's largest cities, Edmonton saw the most rapid growth in rent prices, with a 17.1% annual gain, followed closely by Calgary where rents rose by 12.8% year-over-year. Vancouver retained its position as the most expensive rental market in Canada, with an average asking rent of $3,055 for purpose-built and condominium rentals, although this was a 3% decrease compared to the previous year.

In smaller municipalities, Lloydminster, AB, experienced the highest annual rent price growth at 24.8%, followed by Point-Claire, QC, where rents increased by 20.2%. Nova Scotia led the provinces in rent price inflation, rising by 19.1% year-over-year to an average of $2,210. Alberta and Saskatchewan followed closely with increases of 17.8% and 17.5%, respectively, though asking rents in these provinces remain slightly more affordable at $1,690 and $1,277.

Despite being the slowest-growing province in terms of rent prices at +2.3% annually, British Columbia remains the most expensive rental market in Canada, with an average asking price of $2,529.

The rental market in Canada continues to see significant price increases, driven by a lack of available purpose-built rental apartments and strong demand. Rent prices have reached new record highs, with certain cities and provinces experiencing particularly sharp growth.