The rental exorbitance that defined 2022 showed no signs of relenting in January, according to a new national rent report.
The report -- a collaboration between Rentals.ca and Urbanation, based on data from RentFaster.ca -- puts the average rent for all property types in Canada at $1,996. Although that figure has dipped nominally since December, it was 9.5% above the pre-pandemic level and 10.7% over the year prior. January was the ninth-straight month in which annual rent growth exceeded 10%.
“The Canadian rental market started 2023 where it ended in 2022, posting sharp annual rent growth amid low supply and quickly rising demand,” says Urbanation President Shaun Hildebrand of the data.
Purpose-built and condominium apartment rents climbed 10.3% over the past year, followed by one-bedrooms (up 10.1%), two-bedrooms (up 9.9%), studios (up 8.7%), and three-bedrooms (up 5.7%).
As it has in previous months, the report also highlights the mounting affordability challenges in the Greater Toronto Area (GTA). Apartment rents in Toronto were up 20.8% from the year prior, and in addition, some of the country’s priciest medium-sized markets were in the GTA, including Vaughan, Oakville, Etobicoke, Mississauga, Brampton, and Burlington.
Hildebrand also notes that "rent increases are becoming more acute" in markets across BC and Alberta, due to "relatively strong rates of population growth."
Rents in Vancouver saw an annual increase of 22.9% in January, while Calgary saw a similar uptick of 22.7%. Of Canada’s six largest rental markets, rents in Vancouver and Calgary are appreciating at the fastest pace.
Meanwhile, the country’s most expensive medium-sized rental markets were seen in BC, with Burnaby, Coquitlam, and Richmond topping that list. Burnaby took over the top spot for the fastest-appreciating rental market, posting a 32.7% year-over-year increase. Burnaby was closely followed by Kitchener (up 28.2%), Brampton (up 25.1%), Hamilton (up 24.1%), and London (up 22.4%).
