Canadian rents remained stubbornly high in April, according to a new National Rent Report from Rentals.ca and Urbanation, averaging $2,002 and “effectively unchanged” from the month prior. Compared to the pandemic low of April 2021, however, the national average has spiked 20%, or by an average of $340 per month.
“Canadians have become accustomed to increasing rents after the pandemic,” says Matt Danison, CEO of Rentals.ca. “Record immigration with most newcomers renting, high interest rates keeping first-time home buyers on the sidelines, and inflation are all drivers of rising rents, increasing demand, and low vacancy rates."
Urbanation Inc, rentals.ca network
The report also sheds light on the rent situation provincially. Ontario observed the fastest annual rent appreciation of any province, with average asking rents for purpose-built and condominium apartments expanding 16.7% to $2,421. Alberta was next in line, with rents inflating 14.8%. Annual rent growth was slowest in British Columbia at just 5.6%.
That said, compared to the pandemic low, rents have increased the most in Ontario, up 29%, and BC, up 28%.
Urbanation Inc, rentals.ca network
As has been a long-standing trend, Vancouver and Toronto remained the most expensive of Canada’s largest markets -- average rents clocked in at $3,236 and $2,822, respectively -- although rates saw no material change from March. Year over year, however, it was a different story. Calgary’s market saw the steepest appreciation (up 22.9% to $1,924), followed closely by Toronto (up 21.2% to $2,822). Vancouver lagged behind, with rents up 16.8% to $3,236.
In addition, from the pandemic low, rents have increased drastically in both Vancouver (up 47%) and Toronto (up 41%).
Urbanation Inc, rentals.ca network
While we have come to expect sky-high rents and drastic rent inflation from Vancouver and Toronto, rents are also exploding in a number of the Greater Toronto Area’s mid-sized markets. In fact, the report says, those markets “dominated” April’s national rent growth. Shaun Hildebrand, Urbanation President, notes that the strongest growth was observed in markets that tend to see the highest levels of immigration, "causing reduced turnover" and "exacerbating the low supply situation."
In an identical fashion to last month, Scarborough and Brampton led the pack in annual rent growth, with increases of 31.9% and 31.2%. Markham -- another hot spot for GTA immigration -- nabbed the third spot with an annual increase of 30.3%. Average rents in Scarborough, Brampton, and Markham came in at $2,543, $2,567, and $2,554, respectively.
