Average rental prices hit a record high in June, driven by strong population growth and continued demand outstripping new supply. The median asking price for a rental unit rose to $2,042 in June, surpassing the previous record of $2,024 set in November 2022, according to new data from Rentals.ca’s Rent Report. This represents an increase of 1.4% from May – the fastest monthly rise so far this year – and a jump of 7.5% in prices compared to last year. Rental prices have now rebounded nearly 23% from the low of $1,662 reached in April 2021.”Rental inflation accelerated in June as the Canadian rental market entered the busy summer season, with both of the country’s largest cities hitting double digits. Annual increases,” noted Sean Hildebrand, president of Toronto real estate research firm Urbanation. “We expect more upward pressure on rents in the near term as the market moves through this year’s peak period and demand continues to strongly outpace new supply,” he added. Although rental apartments are currently at their highest levels in several decades, they are still not enough to keep up with strong demand, driven in part by record population growth. As of the second quarter, Canada’s population grew by more than 1.2 million people, according to the latest data from Statistics Canada. The population grew by more than 290,000 in the first quarter alone, including more than 145,400 new immigrants. This is the highest growth rate in the first quarter since comparable data became available in 1972. This has an impact on residential and rental demand, which far outstrips new supply. The data shows that the markets experiencing the fastest population growth also see the largest increases in rental prices. Alberta Leads Provinces in Rental Rate Growth Alberta again led the provinces with the fastest annual increase in rental rates, which rose 18.3% to $1,522. Quebec was next with average year-over-year rent growth of 11.6% to $1,883. On a monthly basis, rents increased in British Columbia (+3.5%), Manitoba (+2.6%) and Alberta (+2%). Calgary overtakes Montreal with rents above $2,000 one of Canada’s largest rental markets, and Calgary saw Calgary rise 18% year-over-year to pass $2,000 per month for the first time, Rentals reported. It has now overtaken Montreal as the fourth most expensive rental market in the country. The two most expensive markets in the country – Vancouver and Toronto – saw annual rent increases of 15.7% and 15.4%, respectively. The municipality with the largest year-over-year rental price growth was Scarborough (+27.8%), followed by Brampton, ON (+25.8%) and Burnaby, BC (+22%). Here’s a look at annual rent increases in some of the country’s major markets: Calgary, AB: +18.4% ($2,008) Toronto, Ontario: +15.7% ($2,813) Vancouver, BC: +15.4% ($3,301) Ottawa, ON: +15.3% ($2,146) Winnipeg, MB: + 12.2% ($1,529) Montreal, QC: + 11.2% ($1,931) Regina, SK: +6.8% ($1,140) Halifax, NS: +5.3 % ($1,973)
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