Rental prices across Canada continue to surge, with the average asking price for a new tenant now at a record high of $2,117 per month, up 9.6% from last year. The double-digit rental increases are being seen nationwide, including a 17.3% jump in Calgary bringing its average to $2,068. Soaring housing costs have strained many renters’ budgets, like Cassandra in Toronto who spends over half her pay on her $2,400 one-bedroom condo rental after a 14% increase. Experts note rental supply is not keeping up with strong demand from population growth and international students. While rental construction has increased, it will take years to significantly impact prices. With limited affordable options, tenants are advised not to move as rates rise almost everywhere in Canada.
The average asking rent across Canada hit a record high of $2,117 in August 2022, up 9.6% from the previous year.
Rents have been rising the fastest in Alberta, up 15.6% to $1,634 on average last month. Calgary saw a 17.3% increase to $2,068.
Toronto and Vancouver still have the highest rents nationally at $2,898 and $3,316 respectively, but prices are increasing quickly in other parts of Ontario, BC, and Quebec.
Construction of new rental units has increased but is not keeping up with strong demand from population growth and international migration.
Individual landlords are passing on rising mortgage costs to tenants, contributing to rent hikes of over $100 per month since May.
Even moving elsewhere in Ontario offers little relief as rents surge province-wide, up 9.9% compared to Toronto’s 8.7% increase.
Finding affordable units renting under $1,000 has become very difficult across Canada.
Short-term solutions to address the housing shortage are limited given time lags to increase new supply.
Tenants are advised not to move as rental options remain scarce and expensive.
The large influx of newcomers and students is exacerbating the acute housing shortage in both the short and long-term.
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