Rents reach new highs nationally; prices take small drop last month in Oshawa
Published October 13, 2023 at 3:26 pm
Average asking rents in Canada hit new heights with a month-over-month increase of 1.5 per cent, bringing the average asking rent to $2,149 according to Rentals.ca and Urbanation’s latest National Rent Report.
This represents a year-over-year growth of 11.1 per cent, pushing the annual rate of rent inflation to a nine-month high.
Oshawa, the only Durham Region community in the report, bucked the trend somewhat with rents down 1.1 per cent for one bedrooms to $1,833 and 0.5 per cent for two bedrooms to $2,159 last month. Year-over-year rents still went up, with asking prices up 9.3 per cent since this time last year.
When condos are included, Oshawa jumped in the rankings to 13th for all apartments, with average asking prices of $2,034. Vancouver and Toronto took the top two spots.
The Niagara communities of St. Catharines and Niagara Falls both saw rents drop year-to-year for one-bedroom units as well as two-bedrooms, but most major markets across Canada experienced rent increases: Richmond Hill (29.7 per cent) and Oakville (26.6 per cent) were among the biggest climbers for two-bedroom units.
There are indications, however – that the annual rate of rent growth may be slowing. Notably, Toronto saw a deceleration in rent growth last month, potentially signaling a broader trend as the economy cools and renters face mounting affordability constraints. This shift was also evident in the rise of rental activity for shared units.
“While rent inflation in Canada remained exceptionally strong in September, most major markets experienced a slower annual rate of rent growth compared to recent months,” said Shaun Hildebrand, president of Urbanation. “This was particularly true in Toronto, where rents grew by their slowest pace in two years.”
Vancouver ($2,986-one bedrooms, $3,908-two bedrooms), Burnaby, Toronto, Oakville, Mississauga, Markham, Richmond Hill, Etobicoke, Guelph and Burlington are top ten cities in Canada for rental asking prices.
One-bedroom apartments recorded the most substantial annual growth in asking rents, jumping 15.5 per cent with an average rent of $1,905. Two-bedroom apartments saw a year-over-year increase of 13.1 per cent.
In Ontario, the annual rate of rent growth slowed from 9.9 per cent in August to 6.6 per cent in September. Asking rents also experienced a 0.4 per cent month-over-month decline to an average of $2,486, second only to B.C.
The National Rent Report charts and analyzes monthly, quarterly and annual rates and trends in the rental market on national, provincial, and municipal levels across all listings on the Rentals.ca Network for Canada. The data from the digital rental platform Rentfaster.ca is incorporated into this report.
The report is written by Urbanation, a Toronto-based real estate research firm providing in-depth market analysis and consulting services since 1981.
