The average rent for all Canadian properties listed for rent on Rentals.ca in April 2022 was $1,821 per month, an annual increase of 9% from $1,676 per month in April 2021.
Rentals.ca March 2022 Rent Report
Rentals.ca March 2022 Rent Report
1. National Overview
The April 2022 average rent is similar to the levels experienced before the pandemic in both 2020 and 2019, but is about $25 lower or approximately 1.5% less.
The figure below presents the average monthly asking rent for all property types in Canada via Rentals.ca listings for the months of January to April in 2019, 2020, 2021, and 2022.
The April 2021 rent figure was the lowest national average rate over the last four years, with the monthly results in 2022 close to pre-pandemic rent levels.
Average Rent by Property Type and Month
The chart below shows the average rent levels in Canada by property type for March and April in 2021 and 2022, the monthly percentage change in rent is shown for April in both years.
The most expensive units are single-family homes, with landlords asking $2,776 per month on average in April 2022 compared to $2,265 per month for townhouses, $2,235 per month for condo apartments, $1,651 per month for rental apartments, and $1,590 per month for basement apartments.
Single-family properties increased month-over-month, rising 2.2% from $2,716 to $2,776. Single-family homes also experienced an annual increase in average rent between April 2021 and April 2022, rising 11% from $2,502 up to $2,776 per month.
Townhouse rents also increased month-over-month, experiencing an increase of 3.8% from $2,182 per month in March 2022 to $2,265 per month in April 2022. Townhouses also experienced a double-digit annual increase of 18% from the April 2021 average of $1,922 per month.
Condo apartments experienced a monthly increase of 1.5% from $2,201 per month in March 2022 to $2,235 per month in April 2022, while also experiencing an annual increase of 12.5%.
Rental apartments, which make up the majority of the listings on Rentals.ca, experienced a month-over-month increase of 0.3% from $1,646 per month in March 2022 to $1,651 per month in April 2022. Given the large size of rental apartment listings, they are the most reliable property type to review and are the most reflective of rental market conditions nationally.
Basement apartments experienced an annual increase of 6.4% from $1,495 per month in April 2021 to $1,590 in April 2022.
Rental demand typically picks up in the spring, and softening resale housing market conditions could further boost rental demand.
Rent by Bedroom Type
The line chart below presents data on the average rent by bedroom for all property types in Canada from April 2019 to April 2022. Average monthly asking rents are marked for the April months only.
Studio units had an average rent of $1,330 in April 2022, experiencing an annual increase of 6% from $1,255 per month in April 2021.
One-bedroom units moved from $1,500 in April 2021 up to $1,579 per month in April 2022, representing an annual increase of 5.3%.
Two-bedroom units experienced an annual increase of 9%, moving from $1,793 per month in April 2021 up to $1,950 per month in April 2022.
Three-bedroom units also experienced an annual increase of 9%, moving from $2,125 per month in April 2021 up to $2,310 per month in April 2022.
There continues to be outsized demand for larger rentals, and many employees remain in hybrid work environments, and are demanding more space to work from home.
Rent Per Square Foot
The chart below shows the average and median rent per square foot (psf) for rental and condominium apartments in Canada by month since the start of 2019 based on Rentals.ca listings where the landlord or owner provided the suite’s size.
Condo apartments have more or less stayed the same month over month from February to April, staying between $3.11 psf and $3.13 psf. However, the April 2022 rent level has increased by 8.7% from the April 2021 average of $2.88 psf. The market had bottomed out in February of 2021 at $2.82 psf.
Rental apartments have also stayed relatively steady, declining slightly from $2.24 psf in March 2022 down to $2.22 psf in April 2022. This also represents an annual increase of 3% from the April 2021 average of $2.15 psf.
2. Provincial Rental Rates
In the chart below, median rents are shown by province for all property types in April 2022 on the coloured map. The average rent and change in average rent on a monthly basis is also shown.
On a provincial level, British Columbia had the highest rental rates in April 2022, with landlords seeking $2,347 per month on average for all property types (median: $2,200), representing a monthly increase of 2.7%.
Ontario had the second highest rental rate at $2,093 per month (median: $2,000), while Newfoundland had the lowest at $950 per month (median: $875).
Saskatchewan had one of the highest monthly changes in average rental rates, increasing by 2.3% to $1,051 per month. Alberta also had a relatively high month-over-month increase in average rent, increasing by 2.1% to $1,289 per month.
3. Municipal Rental Rates
The chart below presents data on the average rental apartment and condominium apartment rental rate by municipality (area) in Canada for April 2022, with the monthly percent change in average rent shown on the right.
Vancouver had the highest average asking rents in Canada in April 2022 for apartments (both tenures) at $2,748 per month, followed by Toronto at $2,303 per month (former City of Toronto boundaries prior to amalgamation) and Etobicoke at $2,173 per month.
A handful of municipalities experienced significant month-over-month increases in average rent, including Vancouver, Etobicoke, and Edmonton. Vancouver experienced a 3.3% monthly increase, Etobicoke experienced a 3.2% monthly increase, and Edmonton experienced a 3.1% monthly increase.
Only two of the selected municipalities experienced month-over-month declines in average rent: Halifax experienced a monthly decline of 2.7%, while Ottawa experienced a monthly decline of 0.4%.
The table below shows the average rent, average rent per square foot and annual change in these rent levels for select municipalities and former municipalities in Canada for condominium and rental apartments.
The largest annual increase in average rent was experienced in Vancouver, increasing year over year by 25% to $2,748 per month. Several other areas also experienced notable annual increases, including Toronto and Etobicoke at 15%, and Calgary at 13% annually.
Winnipeg and Regina were the only areas selected that experienced an annual decline in average rental rate. Winnipeg experienced an annual decline of 2% to $1,314 per month, while Regina experienced an annual decline of 4% to $999 per month.
In terms of average per-square-foot rents, the most significant annual increases occurred in London, Vancouver, and Calgary. London experienced an annual increase in average rent per-square-foot of 22% to $1.89 psf. Vancouver experienced an annual increase of 19% to $3.96 psf. Calgary experienced an annual increase of 18% to $2.21 psf.
Winnipeg was the only market to see annual declines in both monthly rent and rent per-square-foot.
Rounded Unit Size in Toronto
The average rent by rounded unit size for the first four months of the year in 2019, 2020, 2021 and 2022 is shown in the chart below. This graphic includes all property types.
The 600-square-foot and 700-square-foot units are up between 14 and 15% annually when comparing the January to April 2022 period to the same four months last year.
Units rounded to 1,600 square feet or larger have seen rents increase by 3% annually in 2022 and 4% annually in 2021
Rent Per-Square-Foot by Apartment Tenure in Toronto
The following figure shows the average rent per-square-foot for condo and rental apartments in Toronto from January 2019 to April 2022.
Condo apartments had an average rent per-square-foot of $3.70 in April 2022 representing a monthly increase of 1.6% and an annual increase of 18%.
Rental apartments had an average rent per-square-foot of $3.35 in April 2022, representing a monthly increase of 1.5% and an annual increase of 14%.
In April of 2021, condos were offered at a premium of 7% above rental apartments. In April of this year, condos were offered at a premium of 10% above rental apartments.
Condominium Rental Rate by Project in Toronto
The figure below presents the average rent per-square-foot for select condo projects in Toronto for the months of March and April in 2020, 2021, and 2022.
Massey Tower had the highest average per-square-foot rent for the months of March and April 2022 at $4.52, representing an annual increase of 37%. Harbour Plaza – West Tower had the next highest average per-square-foot rent at $4.24, representing an annual increase of 24%.
Of the selected projects, Dundas Square Gardens had the lowest average rent per-square-foot at $3.19, representing an annual decline of 6%.
Overall, this sample of high-activity condo projects leased units for
4. Conclusion
The average monthly rental rate increased 9% annually to $1,821 per month for all property types across Canada, with condo apartments and single-family homes leading the way with annual increases of 13% and 11% respectively.
Two- and three-bedroom units are seeing higher growth rates than smaller suites as tenants continue their preference for larger suites as many employees continue to work from home.
British Columbia and Ontario are the two provinces with the highest average monthly rental rates, but in terms of month-over-month changes, British Columbia, Saskatchewan, and Alberta are the provinces that experienced the largest monthly increases in average rental rate, as the west is seeing stronger rental demand than the east.
As central banks across the globe fight inflation by increasing interest rates, some demand will shift from the ownership market to the rental market. Secondly, sky-high gas prices may also boost demand for transit-friendly and walkable urban locations – the same properties hit hard during the pandemic when the benefits of dense neighborhoods close to downtown offices, restaurants and entertainment became less valuable.
Bullpen Consulting and Rentals.ca will continue to monitor the market during these uncertain times. Please reach out to us with your commentary, questions or data requests.
