Rent Prices Hit Record High Across Canada, New Report Finds

Rental costs have risen to historic levels in Canada with the average asking rent for all property types rising 9.3 percent year-over-year. (The Canadian Press)

Rental costs have hit a new record high in Canada, according to the latest numbers from rental listing website, Rentals.ca.

The average asking rent for all property types in Canada increased by 9.3 percent year-over-year to $2,202 in May, which is the first time it has passed the $2,200 level, the report says. The average cost of rent in May 2023 was $2,014.

Vancouver is at the top of the 35-city list, with the average one-bedroom rental going for $2,671 and a two-bedroom at $3,628. In the lower mainland, Burnaby came in with the second-highest rent prices at $2,545 for a one-bedroom and $3,213 for a two-bedroom.

Rent prices in Toronto were the third highest in the country, with a one-bedroom going for $2,479 and a two-bedroom $3,284. Mississauga took fourth place on the list with an average rent price for a one-bedroom at $2,339 and a two-bedroom at $2,702.

Rounding out the top five most expensive rental markets in Canada was North York, where a one-bedroom costs $2,287 and a two-bedroom $2,696.

The cheapest of the 35 Canadian cities on the list was St. John’s, where a one-bedroom costs $955 and a two-bedroom comes in at $1,149. Fort McMurray was the second cheapest rental market on the list with a one-bedroom costing $1,242 and a two-bedroom $1,473. Saskatoon came in third for most affordable rental markets with a single-bedroom place renting for $1,258 and a two-bedroom $1,459.

Saskatchewan’s other major city, Regina, came in fourth cheapest, with a one-bedroom costing $1,259 and a two-bedroom coming in at $1,517. Quebec City was listed in fifth place with one-bedrooms renting for $1,353 and  two-bedrooms costing $1,739.

Provincial Breakdown

Rental increases in Nova Scotia, Alberta, and Saskatchewan drove the annual rent inflation of apartments in the country, the report authors wrote. All three provinces saw at least a 2 percent month-over-month increase.

Rental prices dropped in Vancouver and Toronto on an annual basis, with Toronto seeing a 0.9 percent drop in prices and Vancouver seeing a 4.1 percent drop.

Toronto rents are still 4.4 percent lower than their high in November 2023. Vancouver rents peaked in July 2023 and are now 9.9 percent lower.

The report says Edmonton remains at the top of the cities with the largest rent growth, with a 14.6 percent annual increase. However, rent costs in Edmonton are still lower than in Calgary, which saw a 7.6 percent annual increase.

Lloydminster, which borders Alberta and Saskatchewan, is the city with the fastest-rising rents in the country. Rents are up almost 30 percent in this community over the past year, with an average rental price of $1,150, which is still 46 percent below the national average, according to the report.

Type of Rental

The data includes prices of rental apartments, condominiums, and townhouses. When broken down, the average rental price of a one-bedroom apartment is $1,942, while the same-size condo costs $2,087, and a one-bedroom townhouse comes in at $1,506.

Rents for condo rental apartments increased 10.6 percent over May 2023, the report says, while apartment rentals saw a year-over-year increase of 13.7 percent.

The cost of roommate accommodation has also risen over the past year, with May seeing a rise of 8.4 percent in asking rents for shared accommodations. The average price of a roommate-style setup is $992, with British Columbia costing the most at $1,191, followed by Ontario at $1,069. Alberta has experienced the largest increase in shared accommodation rents, up 9.6 percent from last year to $883.

In Toronto, the cost to rent with a roommate dropped by 3.2 percent, sitting at $1,257, while Ottawa also saw a drop of 1.2 percent to $936, the report authors said. Roommate rental costs jumped 8.5 percent in Calgary and now sit at $915. However, Vancouver remains the most expensive city to have a roommate at $1,469, a 2.5 percent increase from May 2023.

Report data is based on monthly listings on Rentals.ca.