After breaking through the $2,000-a-month level in September, the national average rent for all property types slipped 3.2 per cent to $1,976 in October, according to the latest report by Rentals.ca and Urbanation Inc.
While the month-over-month average decreased slightly in October, year-over-year results rose 11.9 per cent. Rents charged last month averaged $209 per month higher than in the same month a year ago at $1,767. The overall rise in rent comes as many potential home buyers continue to lease as interest rates rise and inflation runs hot. The Bank of Canada’s final interest rate announcement of the year is expected in December.
“The unprecedented growth in rents underway is broad-based across Canada, with most markets reporting double-digit annual rent inflation,” said Shaun Hildebrand, president of Toronto real estate research firm Urbanation, which co-released the report. “The rental market keeps getting hotter with each interest rate increase, coupled with a record-high increase in the population. The need to ramp-up rental supply has never been greater.”
Atlantic Canada has experienced the steepest rises in rental costs over the past year, with an average rent increase of 32.2 per cent. In Ontario, British Columbia and Alberta, rents have still risen dramatically, by 17.7 per cent, 15.1 per cent, and 13.2 per cent, respectively, over the past year.
The Greater Toronto Area saw larger increases than the province as a whole. Toronto’s average rent surged by 26.8 per cent year over year, Brampton’s rents were up 28.9 per cent and in North York the increase was 24.2 per cent. Burlington and Missisauga saw increases of 18.5 per cent.
The average monthly rent for purpose-built and condominium apartments in Vancouver was $2,976, the highest among markets with populations of more than one million. Meanwhile, rents in Toronto for purpose-built and condominium apartments stepped back to an average of $2,820 in October, down from $2,855 in September.
Edmonton remains the most affordable market in Canada, with an average rent of $1,273.
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