Annual rent increases slowing as average asking price reaches $2,174 in November

A rental sign is seen outside a building in Ottawa, Thursday, April 30, 2020. THE CANADIAN PRESS/Adrian Wyld

A report says the average asking price for a rental unit in Canada was $2,174 in November, relatively flat from the previous month but an 8.4 per cent increase year-over-year.

The data released Friday by Rentals.ca and Urbanation, which analyzes monthly listings from the former's network, showed the annual rate of rent growth in Canada continues to slow, following increases of 9.9 per cent in October and 11.1 per cent in September.

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The average cost of a one-bedroom unit in November was $1,911, up 13.6 per cent from the same month in 2022, while the average asking price for a two-bedroom was $2,260, up 10.5 per cent annually.

There were notable slowdowns in two of Canada's most expensive major cities for renters, according to the report.

Vancouver saw asking rents rise 0.7 per cent from last year to $3,171, while average asking rents in Toronto decreased 2.4 per cent to $2,913. Month-over-month, asking rents for apartments fell 1.4 per cent in Vancouver and increased 0.2 per cent in Toronto.

Meanwhile, Edmonton overtook Calgary as the leader in rent growth among major markets, as average asking rents in the provincial capital rose 11.9 per cent compared with a year ago to reach $1,472. In the southern Alberta city, asking rents increased 10.4 per cent to an average of $2,081.

The report also said Montreal experienced a "somewhat slower rate" of increases in asking rents in November compared with previous months, recording annual growth of 8.5 per cent to reach an average of $2,048. Average asking rents increased 6.8 per cent annually in Ottawa to $2,238.

Rentals.ca and Urbanation also noted that average roommate rents are nearing four figures, with the asking price for shared accommodations in B.C., Alberta, Ontario and Quebec growing 16.2 per cent over the past year to a record high of $960.

Shared accommodation rents increased fastest in Quebec at 26.2 per cent year-over-year, reaching an average of $923 last month.

This report by The Canadian Press was first published Dec. 18, 2023.