Breaking News: Canada's Rental Housing Market start to rise again

The median rental price across Canada increased by approximately 1% between February and March 2023, the first monthly increase since November last year.

As we head into the warmer months of the year, renters in Canada may be facing higher costs. According to a report by Rentals.ca published on April 13, the median rental price across Canada increased by approximately 1% between February and March 2023, the first monthly increase since November last year. Asking rents for all properties available on listings recorded increases of 1% per month and 10.8% per year, moving towards a higher average of $2,000 CAD ($1,499).

The report shows that demand for rental housing in Canada is outpacing supply, with double-digit annual asking rates pushing up average annual rents by about $196 CAD. In March 2023, rents for apartments and rental houses increased by 1.5% compared to February 2023 and 10.9% year-on-year, reaching an average of $1,937.

Breaking News: Canada's Rental Housing Market start to rise again

However, some cities are experiencing even steeper increases. Vancouver, British Columbia, currently has the highest rents at around CAD 2,743 for a one-bedroom apartment and CAD 3,653 for a two-bedroom apartment, corresponding to an increase of 3.9% and 2% respectively compared to February 2023. If calculated on an annual basis, the figure will be about 17.3% for one-bedroom apartments and 21.5% for two-bedroom apartments.

Toronto has also seen a significant rise in rental prices, with an average one-bedroom home price of $2,506, up less than 1% from February 2022, but up 22.2% year-on-year. The average price for a two-bedroom home fell 0.8% to about CAD 3,286 compared to February 2023 but increased by 19.7% from March last year.

The place with the fastest increase in rental prices is Calgary, where rents for apartments and rental houses increased by an average of 24.9% year-over-year to $1,890. Toronto had the second-fastest increase, with an average rate of 22.4%.

Despite these increases, there are still affordable options available, particularly in smaller cities like Lloydminster, which is located on the border of the provinces of Alberta and Saskatchewan. One-bedroom homes here are $820 CAD, up 0.7% month-on-month and 10.3% this time last year. Two-bedroom homes have a median rent of $925 CAD, representing a decline of 0.3% compared to February 2023 but an increase of 8.4% compared to March 2022.

Overall, the report suggests that the rental housing market in Canada is on the rise again after a period of transition, with demand for rental properties outpacing supply. As renters begin to look for new accommodations in the coming months, it may be worth considering the various options available in order to find the best deals possible.