Across Canada, the average asking rent for a one-bedroom unit rose from $1,414 per month in April 2021 to $1,849 in June of this year. (Photo: Paige Taylor-White/Toronto Star via Getty Images) (Paige Taylor-White via Getty Images)
Canadian apartment rents have long since erased the price declines caused by the COVID-19 pandemic and have continued to hit record highs ever since, rising at an often dizzying rate, fuelled by supply shortages and unprecedented population growth.
But the rate of increase since the pandemic low in April 2021 has varied widely across the country. Prospective renters in some cities are now facing much higher average rents than others. Across Canada, the average asking rent for a one-bedroom unit has risen from $1,414 per month in April 2021 to $1,849 in June of this year, an increase of about 30.8 per cent in just over three years, according to data from Rentals.ca.
Calgary, Vancouver, Burnaby, British Columbia, and London, Ontario have seen increases of 40% to over 50% since April 2021. Burnaby’s 53.6% increase equates to an annualized growth rate of approximately 14.3%.
The largest increases for two-bedroom apartments are similar, with Victoria, British Columbia leading the way with a 53.4% increase and London, Ontario coming in last.
Some cities that have seen big price increases remain relatively affordable. For example, Edmonton and Regina, Saskatchewan, have seen average rents increase by more than 35%. But these cities still rank low on Rental.ca’s June 2024 rankings because their April 2021 prices were significantly lower than those of the most expensive cities. Average rents there are roughly half that of Vancouver and Toronto.
Meanwhile, Gatineau, Quebec; Laval, Quebec; Montreal; Winnipeg; and Fort McMurray, Alberta, all saw one-bedroom home prices increase by less than 25 per cent, well below the Canadian average.
The rent surge in Vancouver and the neighboring suburb of Burnaby coincides with labour force data showing a big increase in population this year. Calgary has also seen an influx of people, and Alberta is now the top destination for interprovincial migration. Affordable housing is seen as one of the factors drawing people to the province.
Toronto has also seen a notable population increase, with the average rent for a one-bedroom apartment increasing by nearly 35% since its pre-pandemic lows. Montreal has also seen a similar recent population increase as Vancouver, but rent increases have not been as steep as in West Coast cities.
John MacFarlane is a senior reporter for Yahoo Finance Canada. Follow him on Twitter. FollowDownload the Yahoo Finance app, available for Apple and Android.