Market Insight for March 15

A new report released this week says the average asking price for a rental unit in Canada was $2,193 per month in February, up 10.5% year-over-year and the fastest annual growth since September 2023.

The data released Monday by Rentals.ca and Urbanation, which analyzes monthly listings shows the average monthly cost of a one-bedroom unit in February was $1,920, up 12.9% from the same month in 2023. The average asking price for a two-bedroom was $2,293, up 11.3% annually.

The report says rents in Canada have increased overall by a total of 21% or an average of $384 per month, from two years ago, just before the start of interest rate hikes by the Bank of Canada.

Alberta maintained its status as the province with the fastest-growing rents, with total average asking prices up 20% annually last month to reach $1,708. British Columbia and Ontario posted the slowest growth in February, with annual increases of 1.3% and 1%, respectively. But the provinces remain Canada’s most expensive for renters, with total average asking rents of $2,481 in B.C. and $2,431 in Ontario.

It appears that traditional purpose-built rental apartments experienced the fastest year-over-year price growth in February, with a substantial increase of 14.4%, averaging $2,110 in rent. Meanwhile, condominium rentals and apartments in houses saw slower annual growth rates of 5% and 5.3%, respectively, with average rents of $2,372 and $2,347.

Additionally, there was a notable surge in roommate listings last month. The number of listings for shared accommodations in Canada’s four largest provinces increased by 72% in February compared to the previous year. The average rent for shared accommodations also rose, with a 12% increase to $1,010.

Breaking down the data by province, British Columbia saw a 13% annual growth in roommate rents to $1,186, Alberta experienced a 12% increase to $873, Ontario witnessed a 9% rise to $1,099, and Quebec observed a 5% uptick to $920 in average roommate rents.