In July 2022, the average monthly rent for all Canadian homes listed on Rentals.ca was $1,934, an increase of 10.4% yearly and 2.4% monthly. The average rental fee is currently just $20 per month less than the September 2019 market top. In July 2022, the typical rental fee was $1,799 per month, up from $1,750 in June of this year and up 9% from $1,649 in July of the previous year. The market peaked in September 2019 at $1,954, before declining by 14.3% to $1,675 in April 2021. Since then, the average rental rate has climbed by 15.5%.
Single-family houses are the most costly, with average monthly rents of $3,043 in July 2022, an increase of 14.1% year-over-year. Since January 2022, the average rent for single-family dwellings has increased by $391, indicating an upward trend. Average rental prices for townhomes have increased by 17.3% yearly to $2,465 per month, the greatest annual rise of all property types evaluated. The second greatest year-over-year rise in average condo unit rentals was 14.4%. In July 2022, rental apartments, which account for the bulk of Rentals.ca listings, increased by 7.7% annually to $1,743 a month. Since the beginning of the year, the monthly average rent has progressively risen to its present level, with several new projects launching their leasing programs in July, driving up the average rent level.
On a provincial basis, British Columbia had the highest rental rates in July 2022, with landlords demanding an average of $2,590 per month (all property types), a 0.6% monthly and 19% yearly rise. In July 2022, Ontario had the second-highest rental prices, averaging $2,332 per month. This represents a monthly rise of 3.1% and a yearly increase of 15.2%. In six of the seven provinces examined, average rents rose year-over-year, except Manitoba, where prices were practically steady ($1,380 to $1,377). However, per-square-foot rent in Manitoba rose 3.4% year on year, from $1.72 to $1.78.The yearly rent increase in Nova Scotia is 25%, outpacing British Columbia’s 16% and Ontario’s 15%. The majority of provinces had month-over-month rises in average monthly rental prices from June to July in 2022 and 2021, monthly. Saskatchewan and Nova Scotia saw monthly reductions in 2021, whilst Manitoba and Nova Scotia experienced monthly drops in 2022. The average monthly condo rent in British Columbia increased by 23% and 32%, respectively, for units with one and two bedrooms. In Ontario, condo rents increased by 20% for one-bedroom units and 15% for two-bedroom units. The average annual rent inflation for one- and two-bedroom apartments in Ontario outpaced the rise in all other provinces. Condos for rent command a large premium over rental apartments, with condo apartment landlords in British Columbia charging 41% more on average for a one-bedroom unit than rental apartment landlords. In British Columbia, two-bedroom condos are 35% more costly than two-bedroom flats with rental tenure.
In Calgary, condo unit rates per square foot have climbed by 20% yearly and by 43% since July 2020. Vancouver’s 28% yearly growth and 32% rent inflation over the previous two years surpass these gains. In Toronto, condo rates per square foot climbed by 18% yearly between July 2021 and July 2022 (to $3.90), but only by 9% during the previous two years. Calgary has the largest apartment rent rise per square foot, with the average increasing 30% yearly to $2.55 and 38% over the previous two years. The yearly rent increase for Vancouver apartments is 12%, reaching $4.16 per square foot, which is 24% more than in July 2020 ($3.34 per square foot). Over the last year, apartment rentals in Toronto have increased by 24% to $3.79 per square foot, and are currently 19% higher than in July 2020 ($3.56 per square foot).
In Ontario, the condo premium for one-bedroom apartments is 23% and for two-bedroom units, it is 25%, but in Quebec, it is 14% and 11%, respectively. After increasing by 2.6% month-over-month in July 2022, the average rent for all property types listed on Rentals.ca is now increasing yearly by double digits. However, typical rents remain somewhat below the last market high, which occurred in late 2019, before the pandemic.