Rental rates in Canada grew seven per cent year-over-year

By Justin Sibbet - Lethbridge Herald Local Journalism Initiative Reporter on July 24, 2024.

LETHBRIDGE HERALDjsibbet@lethbridgeherald.com

Canadian renters can breathe a sigh of relief, though only a shallow breath.

According to a July 2024 update by Rentals.ca and Urbanation, Canadians can now expect their rent to be, on average, $2,185. However, Alberta is well below this national level despite some of the highest increases.

The year-over-year increase of seven per cent nationally is the lowest in 13 months, according to the Rentals.ca report.

In Calgary, the average rental asking price for a one-bedroom apartment is currently $1,743, making the southern Alberta city the 23rd highest major centre in the country. A two-bedroom unit is typically requesting $2,145, which is a 2.8 per cent increase year-over-year, far below the national average.

Across the province, an average purpose-built or condo rental apartment is going for $1,798. However, this number is up 15.8 per cent from this time last year. In fact, Alberta is seeing a rise of 19 per cent in zero-bedroom bachelor pads and 18 per cent in three-bedroom units as well.

The worst offender for high rental rates remains Vancouver. The west coast metropolis has an average two-bedroom unit going for $3,638. This is down 5.6 per cent from last year, yet it remains the highest in the nation. Single bedroom units have dropped a full 7.5 per cent in Vancouver, while the rate still sits at $2,724.

While Vancouver and British Columbia have the highest average rates in Canada, a surprising province has become the fastest rising in the nation. Saskatchewan’s three-bedroom units have jumped a whopping 28 per cent, with bachelor pads rising 15 per cent and single and double-bedroom units falling in between on a year-over-year basis.

Every single province, according to the Rentals.ca report, has seen rental asking rates increase, except for Ontario, which has dropped by a single per cent.

While Ontario has moved in the renter’s direction, it is still the second most expensive province to rent a home in, with Toronto leading the charge with the highest rates in the province.

For small to mid-sized cities with at least 50 rental listings at the time of the report, Lethbridge ranks as the seventh most inflated in Canada at 14.7 per cent in the last 12 months and third most inflated in Alberta. Scarborough was the lowest nationally, sitting at just 1.7 per cent as of June 2024. Lloydminster has skyrocketed by 29.6 per cent, making it the highest in this category.

The rise of 14.7 per cent in Lethbridge is in line with an approximate 14 per cent increase in home sale rates as well, according to the Alberta Real Estate Association. In more recent months, Houseful.ca indicates Lethbridge has seen the median price of a home rise 9.2 per cent to $409,316 since January. This is down from $415,666 a month ago.