The Rentals.ca National Rent Report for January 2024, authored by Urbanation, provides a comprehensive analysis of the Canadian rental market. Here’s an analytical overview of the key findings and trends highlighted in the report:

Record-High Average Rents in December 2023

  • National Average Rent: The average asking rent for all residential property types in Canada reached a record high of $2,178 in December 2023, marking an 8.6% increase from December 2022.
  • Trend Over Years: There has been a cumulative increase of 22% in asking rents over the past two years, averaging an additional $390 per month.

Rental Market Dynamics

  • Post-COVID-19 Recovery: The rental market has shown significant recovery since the 5.4% decrease in 2020 due to COVID-19 effects.
  • 2024 Outlook: The rental market in 2024 is expected to be undersupplied but more balanced, with rent growth converging towards the five-year average of approximately 5%.

Segment-Specific Trends

  • Traditional Apartments: Traditional purpose-built rental apartments, although having the lowest average rents at $2,076, experienced the fastest growth with a 12.8% increase.
  • One-Bedroom Apartments: Rents for one-bedroom apartments grew by 13%, reaching an average of $1,932.

Provincial and Municipal Insights

  • Alberta’s Growth: Alberta recorded the fastest-growing rents for purpose-built and condominium apartments in 2023, with a 15.6% annual increase.
  • B.C. and Ontario: B.C. remained the most expensive province for apartment rents, while Ontario experienced a notable slowdown in rent growth compared to the previous year.
  • Calgary and Edmonton: These cities led the rent growth among Canada’s largest cities, with Calgary experiencing a 14.0% annual increase.

Market Variations

  • Affordability Factors: More affordable markets like Alberta are expected to continue experiencing above-average rent increases.
  • Expensive Markets: In contrast, more expensive markets like B.C. and Ontario are likely to see rent increases below the national average

Conclusion

The Canadian rental market is experiencing significant growth, with record-high rents and varying trends across provinces and property types. The market is expected to balance out in 2024, but affordability remains a concern, especially in major urban centers.

*The report’s data is based on monthly listings from the Rentals.ca Network of Internet Listings Services (ILS), covering both primary and secondary rental markets