Canada’s Asking Rents Surge 10 per cent Annually in January 2024: Report

According to Rentals.ca and Urbanation’s latest National Rent Report, average asking rent for all property types increased by 10 per cent annually to $2,196, setting new records in January 2024.

This increase reflects a 0.8 per cent month-over-month rise, which pushes the annual rate of rent growth to a four-month high.

When compared to January 2020, prior to COVID-19 lockdowns, average asking rents have increased 20 per cent since, which translates to a $373 per month increase.

“The Canadian rental market began 2024 where it left off in 2023, with rents surging to new highs,” said Shaun Hildebrand, president of Urbanation.

“However, an underlying narrative has emerged between softening rents in expensive markets and strengthening rents in more affordable markets. These shifts in demand are symptomatic of a worsening supply situation for rentals in Canada.”

According to the report, purpose-built rental apartments saw the most substantial growth, with average asking rents increasing by 13.5 per cent over the past year to $2,107.

Condominium rentals followed, according to the report, and experienced a 4.1 per cent annual increase to average rents of $2,372 in January. House rentals, however, saw a 5.6 per cent year-over-year increase, reaching an average of $2,352.

The report noted that one-bedroom apartment rents saw an increase of 12.6 per cent annually, and reached a record average of $2,146. Two-bedroom apartments saw an 11.0 per cent surge in asking rents to an average of $2,334, while three-bedroom rents saw an 11.6 per cent increase from last year. Studio apartment rents rose by 11.8 per cent annually to reach an average of $1,595.

According to the report, Nova Scotia, Alberta, and Saskatchewan led with annual rent inflation rates of 19.1 per cent, 17.8 per cent, and 17.5 per cent respectively.

British Columbia remained the most expensive province, with average asking rents reaching $2,529 for purpose-built and condominium apartments in January.

Edmonton surpassed Calgary in rent inflation, and posted a 17.1 per cent annual increase to an average of $1,479 for purpose-built and condominium rentals.

According to the report, Vancouver remained Canada’s most expensive city, despite a 3.0 per cent decrease in rents from the previous year, with an average asking rent of $3,055.

Toronto saw a 2.4 per cent increase in rents over the past year, reaching $2,830 on average.

The report noted that roommate rents across Canada hit a record high of over $1,000, with average asking rents for shared accommodations increasing by 18.5 per cent annually to $1,010 in January.

Vancouver and Toronto recorded the highest roommate rents at $1,338 and $1,311 respectively.