Rental prices across Canada continued to undergo massive upward pressure in August, with year-over-year rent inflation at more than 24 percent in numerous cities, new data shows.
Nationally, increases were seen in all property types, with the average rent for single-family homes hitting $3,061 per month in August 2022, which is 13 percent higher than in August 2021. The average rent for condominium apartments grew from $2,155 in August 2021 to $2,312 in August 2022, and rents for traditional rental apartments grew to $1,729 per month this August, up from $1,639 per month in August last year.
Rent inflation is particularly severe in some metropolitan areas, according to the report. Average rent in Vancouver in August was at $3,184 a month, which is a 24.4 percent year-over-year rent increase. It is followed by Toronto, with average rent at $2,694 per month this August—a 24.2 percent year-over-year rent increase.
London, Ontario, had the highest annual rent growth at 26.5 percent, followed by Calgary with an annual growth rate of 24.7 percent. Vancouver and Toronto came in third and fourth places. Hamilton, Ontario, is the fifth and last municipality to have an over 20 percent annual rent growth rate at 21 percent.
In Toronto, condo apartments soared to $2,945 in August this year, up from $2,276 two years ago. Condo apartments in Vancouver are averaging $3,651 in rent, up by more than $1,000 from $2,575 in August 2020.
“There continues to be outsized rent growth in Canada, with the average listing on Rentals.ca nearly $200 more expensive than a year ago,” said Ben Myers, president of Bullpen Research and Consulting Inc. and author of the report.
“With another interest rate hike from the Bank of Canada, potential buyers are further dissuaded from purchasing, sending more demand into the rental market. The hikes are having a negative impact on job growth, which could keep rents in check if young Canadians find themselves jobless.”
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