Report reveals asking rents hit a new all-time high last month
Canadian renters are facing the highest asking rents ever, after the average rent nationwide increased 9.3% in May compared to a year earlier, roughly in line with the average gain of the past three years.
Recently, RBC economist Carrie Freestone said that as renters typically paying a larger share of their income than homeowners – and those with low incomes even worse off – the long-term accumulation of wealth for this significant share of the population is at risk.
New stats from Urbanation & Rentals.ca show that the average rent was $2,202 last month, marking the first time the $2,200 threshold has been surpassed. While rents have increased by an average 9.1% since 2022, two years of decline during the pandemic mean the five-year average increase is 4.7%.
Renting an apartment has seen the largest increase as almost 14% year-over-year with more a modest 3.4% for a condo and 4.7% for a house/townhouse. Rents for purpose-built rental apartments increased 13.7% from a year ago, which was four times faster than the annual growth in condo rents of 3.4%. Condo studios saw an annual decrease in average rent of 0.7% to $1,856.
The cities where rents have surged the most are not the most expensive markets overall.
A rise of nearly 17% in Regina, Saskatchewan takes the average rent for a one bedroom unit to $1,259 and is one of the lowest rents of this type in the 35 markets listed with only Saskatoon, SK, Fort McMurray, AB, and St. Johns, NL lower. Generally, the less expensive markets have seen the largest hikes.
By comparison, average rent for a one bedroom unit in Vancouver has gone down almost 6% year-over-year but costs $2,671, the most expensive of its kind nationwide. The largest decrease was in Niagara Falls at 9% with the average rent for a one bedroom unit at $1,616.
