The Canadian rental market maintained its momentum in November, with the average asking rent price for a unit hitting $2,174, according to a recent report released by Rentals.ca and Urbanation. Although this figure remained relatively flat compared to the previous month, it marked an 8.4 per cent increase year-over-year.
The data, which analyzes monthly listings from Rentals.ca's network, revealed a notable slowdown in the annual rate of rent growth across the country. After witnessing increases of 9.9 per cent in October and 11.1 per cent in September, November's 8.4 per cent growth indicates a continuing deceleration in the rental market.
Breaking down the numbers, the average cost of a one-bedroom unit in November was $1,911, reflecting a significant 13.6 per cent increase from the same month in 2022. Similarly, the average asking price for a two-bedroom unit was $2,260, showing a 10.5 per cent annual rise.
Two of Canada's most expensive cities for renters, Vancouver and Toronto, experienced notable shifts. In Vancouver, asking rents rose modestly by 0.7 per cent from the previous year to $3,171, while Toronto witnessed a 2.4 per cent decrease, bringing the average asking rent to $2,913. On a month-over-month basis, Vancouver saw a 1.4 per cent decrease, whereas Toronto recorded a slight 0.2 per cent increase.
In a surprising turn of events, Edmonton surpassed Calgary in rent growth among major markets. Average asking rents in the provincial capital rose by an impressive 11.9 per cent compared to the previous year, reaching $1,472. Meanwhile, in Calgary, asking rents increased by 10.4 per cent to an average of $2,081.
Montreal experienced a "somewhat slower rate" of increases in asking rents in November, recording an annual growth of 8.5 per cent, bringing the average to $2,048. Ottawa also witnessed a 6.8 per cent annual increase in average asking rents, reaching $2,238.
A noteworthy trend highlighted in the report was the increasing cost of shared accommodations. Average roommate rents are nearing four figures, with the asking price for shared accommodations in British Columbia, Alberta, Ontario, and Quebec growing by 16.2 per cent over the past year, reaching a record high of $960. Quebec saw the fastest increase in shared accommodation rents at 26.2 per cent year-over-year, reaching an average of $923 last month.
As the Canadian rental market continues to evolve, these trends provide insights into the diverse dynamics shaping the affordability and availability of rental units across the country. The coming months will be crucial in determining whether the observed slowdown in rent growth is a temporary adjustment or a sustained trend in the Canadian real estate landscape.
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