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Canadian Rental Prices up 12% YoY; 24% in Toronto; 32% in Atlantic Canada

Economic Indicators Nov 21, 2022 15:33
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© Reuters.

By Ketki Saxena 

Investing.com - Average rental prices across Canada increased 11.8% year over year, as of October, as per a report by Rentals.ca.

It should be noted that the yearly increase in rent is almost double the yearly increase in average wages, which are up 5.6% year over year. 

On a monthly basis, the average rental price increased 2.2% from September. The average monthly rent for all property types across all of Canada hit $1,976, which was $209 more compared to the same month a year ago.

The most expensive rental markets included Vancouver ($2,576) and Toronto ($2,478, up 24% yea). Burnaby, B.C. was the third most expensive market in Canada ($2,290).

Toronto rentals saw prices increase 24% year over year. 

Contrary to what might be expected, average rent increases were the highest not in the Greater Toronto Area or Metro (TSX:MRU) Vancouver, but in Atlantic Canada. The Atlantic provinces saw 32.2 percent year-over-year, to an average of $2,199 per month.

Ontario followed with a 17.7% average rent increase followed by British Columbia at 15.1%.

Interestingly, rents did not in fact increase in Vancouver, which saw rent prices slips by 3.5% after reaching a peak of $3,083 in August.

Canadians looking to save on rent seriously may have few options but look to the prairie provinces.  The cheapest cities to rent in Canada are all located in the Prairies, with Grande Prairie Alberta. ($968) coming in first, followed by Red Deer Alberta,. ($1,017) and Saskatoon ($1,023).

The rise in rental prices is directly correlated to the rise in interest rates which, despite lowering housing prices, has contributed to further competitiveness in an already crowded rental market. 

The Rentals.ca report notes, “In the period since March when interest rates began to rise, the average rent in Canada has increased by 9.2%, which compares to a nearly equivalent 9.9% decline in benchmark resale prices between March and October as reported by the Canadian Real Estate Association.”

 

Canadian Rental Prices up 12% YoY; 24% in Toronto; 32% in Atlantic Canada
 

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Comments (2)
Herb Marshall
Herb Marshall Nov 21, 2022 17:37
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What is the average rent based on? Square footage? Or rental property value?
Edward Day
Edward Day Nov 21, 2022 17:18
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As long as there is a housing shortage this is predictable! Just adds to the homeless problem!
David Montford
David Montford Nov 21, 2022 17:18
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Ir all boils down to bad governing.Throw in greed and corruption.A recipe for Trudeau to follow.Like Father,like son.Both clowns and more came over the years between them.Oh Canada,our homeless native land...
 
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