Rent for purpose-built apartments is increasing at more than four times the rate of rental condominiums, according to a newly released report.
While condo rent has risen 3.9 percent since 2023, monthly rent for purpose-built apartments has increased 12.7 percent since this time last year, a joint report from consulting firm Urbanation and Rentals.ca found. The report attributes the difference in growth, at least in part, to “condominium completions rising to record high levels in Toronto.”
The largest overall rent increases were for smaller, less expensive units. Studio apartment rents rose 14.9 percent to an average of $1,564, while the cost for a one-bedroom apartment went up 13.6 percent to $1,926 per month on average. Despite the large growth in rental costs, apartments continue to be slightly cheaper overall compared to condo rentals.Condominium apartments rented by investor-owners to long-term tenants are an important source of rental supply, says the Canada Mortgage and Housing Corporation, particularly in major cities. In 2022, rental condominiums accounted for nearly 20 percent of total rental stock.
The average rental price for all properties in Canada now stands at $2,181—an 8.8 percent increase compared to 2023, the report stated.
North Vancouver is listed as the most expensive place to rent in the country, with an average two-bedroom property costing $3,662. Vancouver and Toronto were the second and third most expensive cities in which to rent—coming in at $3,611 and $3,246 respectively—despite a modest decline in prices compared to 2023.
Quebec City saw the largest increase in rent compared to last year. The price rose from $1,288 to $1,750, a 16.6 percent increase for a two-bedroom property. However, when only apartments and condos are examined, the increase in price in Quebec City is more than 19 percent.
The average rent across Canada has substantially increased since March of 2021 when the median property cost stood at $1,670 per month, the report found. It rose to $2,181 this year, a more than 30 percent jump.
Costs for average roommate rents have also remained above $1,000 for four months in a row, with Vancouver being the most expensive. The average roommate rental cost in the B.C. city is $1,416, followed by Toronto at $1,273 per month.
Canada’s housing crisis has been a main focus of the federal budget, set to be released April 16 by the Liberal government.
He also announced a policy to construct rental apartments dubbed Canada Builds, which is based on a B.C. policy that uses low-cost land, low-interest financing and other methods to speed up the creation of rental homes.
