In February, the average asking rent price in Canada soared to $2,193 per month, marking a substantial 10.5% increase compared to the same period in 2023. This surge represents the fastest annual growth since September 2023, as reported by Rentals.ca and Urbanation.
The data indicates that the average monthly cost for a one-bedroom unit rose to $1,920, up by 12.9% from February 2023, while a two-bedroom unit saw an 11.3% increase to $2,293.
Over the past two years, rental prices have surged by a staggering 21%, translating to an average increase of $384 per month. This trend has been attributed partially to the interest rate hikes initiated by the Bank of Canada.
Alberta remains the province with the swiftest rental growth, witnessing a 20% annual increase last month, with average asking prices reaching $1,708. Conversely, British Columbia and Ontario experienced the slowest growth rates in February, with increases of 1.3% and 1% respectively. However, they still stand as the most expensive provinces for renters, with average asking rents of $2,481 in B.C. and $2,431 in Ontario.
In terms of property types, traditional purpose-built rental apartments recorded the highest year-over-year price growth in February, with a substantial 14.4% increase, reaching an average rent of $2,110. Condominium rentals and apartments within houses saw slower annual growth rates of 5% and 5.3% respectively, with average rents of $2,372 and $2,347.
The persistent rise in rental prices underscores the challenges faced by renters across Canada and emphasizes the ongoing need for effective housing policies to address affordability concerns.