December 2023 Rentals.ca Report
Author: Urbanation
Asking rents for all residential property types in Canada averaged $2,174 in November, holding close to the record high in October ($2,178) with a 0.2% month-over-month decrease.
National Overview
Rents Up 8% Annually in Canada Despite Slowdown in Vancouver and Toronto
The annual rate of rent growth in Canada moderated for the third consecutive month. Asking rents increased 8.4% year-over-year in November, compared to annual growth rates of 9.9% in October and 11.1% in September. Rent inflation remained elevated despite a notable slowdown in Vancouver and Toronto.
One-Bedroom Apartment Rents Continue to Rise Fastest
Apartment rents in Canada averaged $2,125 in November, increasing by 11.2% from a year ago. The annual rate of rent growth for studio apartments accelerated to 12.1% in November (average of $1,552), compared to annual growth of 12.0% in October and 11.3% in September. One-bedroom apartment annual rent growth remained strongest among all unit types at 13.6% (average of $1,943), although slowing from annual growth rates of 14.1% in October and 15.5% in September. Two-bedroom apartment annual rent growth also slowed when compared to recent months, from 13.1% in September and 11.8% in October to 11.2% in November (average of $2,324). Three-bedroom rent growth remained slowest amongst all unit types at 9.1% (average of $2,567).
Provincial Overview
B.C. Rent Increases Begin to Slow
Alberta remained the provincial leader for annual growth in apartment rents during November, posting a year-over-year increase of 16.1% to reach an average of $1,695. Annual apartment rent growth was also strong in Quebec at 10.9% (average rent of $1,977) and Nova Scotia at 9.9% ($2,165), although rent increases in both provinces moderated compared to previous months.
While B.C. apartment rents remained highest in the country at an average of $2,582 in November, they decreased 2.2% month-over-month and have experienced a notable slowdown in growth in recent months. Asking rents for apartments in B.C. increased 6.5% year-over-year in November, compared to annual growth of 9.8% in October and 12.3% in September. By province, rents increased the slowest over the past year in Manitoba (+4.9% to $1,524) and Ontario (+5.0% to $2,513). Meanwhile, rent increases for apartments accelerated in Saskatchewan, where average rents rose 8.1% year-over-year to $1,215 — still the lowest by province in Canada.
Municipal Overview
Toronto Rents Decline Again November
Edmonton overtook Calgary as the leader in rent growth amongst Canada’s largest markets in November. Asking rents for Edmonton apartments rose 11.9% from a year ago to reach an average of $1,472, while Calgary asking rents for apartments increased 10.4% over the past year to an average of $2,081.
The sharp slowdown in rent increases continued during November for Canada’s most expensive big cities, Vancouver and Toronto. Average asking rents in Vancouver increased by just 0.7% annually to $3,171, while Toronto’s average apartment rents decreased annually for the second straight month in November, down 2.4% to $2,913. Month-over-month, asking rents for apartments fell 1.4% in Vancouver and increased 0.2% in Toronto.
Compared to previous months, Montreal experienced a somewhat slower rate of increase in asking rents for apartments during November, recording annual growth of 8.5% to reach an average of $2,048. Average asking rents increased 6.8% annually in Ottawa to $2,238.
Most Expensive Markets Are In Greater Vancouver and Greater Toronto
Canada’s 25 most expensive small and medium-sized markets were located in B.C., Ontario and Quebec.
The four most expensive small- and medium-sized cities for average apartment asking rents in November were all located in Greater Vancouver, including North Vancouver ($3,483), Coquitlam ($3,080), Burnaby ($3,046), and Richmond ($2,985).
Small- and medium-sized markets ranked fifth through twelfth for highest apartment asking rents were located in the Greater Toronto Area, led by Oakville ($2,963), Richmond Hill ($2,946), and Etobicoke ($2,690).
The most expensive areas of Quebec for average apartment rents in October were represented by the Montreal markets of Mount Royal ($2,481) and Côte Saint-Luc ($2,458).
Côte Saint-Luc remained the fastest-growing market for apartment rents in October with a 29.4% annual increase. This was followed by annual growth of 25.6% and 24.0% for asking rents in the B.C. markets of Richmond and North Vancouver, respectively.
In Alberta, asking rents for apartments increased the fastest over the past year in Lloydminster (+17.2%) and Red Deer (+17.1%), while Ontario rent growth for apartments was found to be highest in East York (+15.8%) and Oakville (+15.1%).
Average Roommate Rents in Canada Reach Nearly $1,000
Average asking rents for shared accommodations in B.C, Alberta, Ontario and Quebec grew 16.2% over the past year to a record high of $960. Shared accommodation rents increased fastest in Quebec at 26.2%, reaching an average of $923, including rents in Montreal averaging $956. Average asking rents for shared accommodations increased 13.0% annually and remained highest in B.C. at $1,121, including an average rent of $1,442 for shared units in Vancouver. In Ontario, asking rents for roommate rentals increased 10.6% from a year ago to an average of $1,067, which included Toronto rents for shared units averaging $1,322 and Ottawa averaging $962. Alberta roommate rents grew 18.8% year-over-year to an average of $877 in November, including an average of $914 in Calgary and $745 in Edmonton.
Rentals.ca Data
The data used in this analysis is based on monthly listings from the Rentals.ca Network of Internet Listings Services (ILS). This data differs from the numbers collected and published by the Canada Mortgage Housing Corporation (CMHC).
The Rentals.ca Network of ILS’s data covers both the primary and secondary rental markets and includes basement apartments, rental apartments, condominium apartments, townhouses, semi-detached houses, and single-detached houses. CMHC’s primary rental data only includes purpose-built rental apartments and rental townhouses. CMHC also collects data on secondary market rentals, but this is reported separately.
CMHC’s rental rates are based on the entire universe of purpose-built rental units (rental stock), regardless of rental tenure. CMHC rental rates are reflective of what the average household spends on rental housing and not the current market rents for vacant units. The data used in this report is based on the asking rates of available (vacant) units only and reflect on-going trends in the market. This covers a smaller sample size but is more representative of the actual market rent a prospective tenant would encounter. The Rentals.ca Network of ILS’s data typically provides much higher rental rates compared to CMHC, as vacant units typically reset to market rates when not subject to rent control.
The average and median rental rates in this report can also skew higher than CMHC’s data for the following reasons: the inclusion of larger more expensive unit types such as single-family homes, townhouse units, and large luxury condominium units; the presence of duplicate or multiple listings at the same property and the survivorship bias where more expensive or over-priced units take longer to lease and remain in the sample longer.
Properties listed for greater than $5,000 per month, and less than $500 per month are removed from the sample. Similarly, short-term rentals, single-room rentals, and furnished suites are removed from the sample when identifiable.
