Where are the most expensive place and the cheapest apartments to rent in Canada?

In Canada, it is more popular to rent a home than to buy one. In that regard, it's interesting to look at a recent report from Rentals.ca. According to their data, the cost of renting in Canada continues to rise. The average monthly rent faced by new renters is 20% higher than it was two years ago. Back then, the rent price hit its lowest point due to the COVID-19 pandemic.

In April 2021, the average rental price was approximately CAD 1,662 per month. According to data gathered from new listings on Rentals.ca, this April's average rental price is CAD 2,002 per month. This is also an increase of nearly 10% over the same period last year.

This data from the Rentals.ca report published in May is based on monthly rental listings on various Rentals websites. It's worth keeping in mind that the report only looks at asking prices for vacant apartments. However, it can be used to present the trends facing those looking for rental housing right now or who will be looking for it in the foreseeable future.

Canadians and visitors are facing skyrocketing prices. Rentals says the average price of a one-bedroom apartment in Canada's 35 most populous cities is CAD 1,811, while a two-bedroom will cost an average of CAD 2,239. Only 10 of the 35 cities have one-bedroom units below CAD 2,000.

The highest prices are now in Vancouver and Toronto. One-bedroom apartments in these cities can be rented for CAD 3,236 and CAD 2,822, respectively.

Comparing the April 2023 figures with those of a year ago, we can see that apartment rental prices in apartment buildings, condominium apartments, and private homes rose by 12.9%, 3.7%, and 6.4%, respectively.

In some parts of the country, including the cities of Calgary and Toronto, rents have risen by more than 20% over the year, and only a few cities have kept prices the same or fallen since April 2022.

Ontario saw the largest price increase of any province. The average rental price rose by 16.7%. The province can only justify itself by caring for tenants. Alberta is right behind Ontario on the list, with a 14.8% increase from April 2022. Still, renting a home in Alberta will cost almost CAD 1,000 less on average than in Ontario and British Columbia, which saw prices rise by a paltry 5.6%, given the overall trend.

Compared to the lowest average rents during the pandemic (in April 2021), the cost of rental housing is up 29% in Ontario and 28% in British Columbia.

In Saskatchewan, the rent price has risen by 8% over the year, but it's still noticeably cheaper than in the most expensive provinces to live in. For the price of renting one three-bedroom apartment in British Columbia, you can rent two three-bedroom apartments in Saskatchewan. According to Rentals, on average, the cheapest rental housing is in that province. For example, in the city of Regina, a two-bedroom apartment can be rented for about CAD 1,091. That's the lowest price of all 35 cities mentioned in the report.

Vancouver and Burnaby, with CAD 2,330, shared third place on the list of "most expensive" cities. The cities that make up the Greater Toronto Area have the most places in the top 10. Scarborough and Brampton, for example, are becoming more expensive, with home prices up 31.9% and 31.2% over the year, respectively.

The Rentals report, however, notes that properties with rents of less than CAD 500 per month or more than CAD 5,000 were not considered in deriving the average rental value.

It is also worth noting that the data provided by Rentals.ca differs from the data obtained by the Canada Mortgage and Housing Corporation (CMHC). The CMHC is the federal corporation responsible for administering the National Housing Act. CMHC's data is based on the rental value of apartments built for rent and townhouses. Rentals, on the other hand, considered basement apartments, condominiums, semi-detached houses, and detached houses when compiling the report.

CMHC's latest report on average Canadian rental costs, which contained data from last October and was released in March, said the average price for a two-bedroom apartment was CAD 1,779 in Toronto, CAD 2,009 in Vancouver, CAD 1,463 in Calgary, and CAD 1,022 in Montreal.

Those who have dreamed of moving to Canada or have already done so may now be thinking about buying their homes as soon as possible. Especially since Reuters predicts a decline in real estate prices, the market has some good deals, and, for example, in Calgary, cottage values are falling. So if you're thinking about moving to Canada, don't be intimidated by rental prices; you can always find affordable options. And if you have already firmly decided that immigration to Canada is what you need, you can contact us for consultation.