Canada Rental Market Shows Slowdown in Price Increases

  • 📰 globebusiness
  • ⏱ Reading Time:
  • 82 sec. here
  • 8 min. at publisher
  • 📊 Quality Score:
  • News: 53%
  • Publisher: 66%

Real Estate News

Rental Market,Canada,Housing

New rental construction slows Canada's rental price increases. Toronto sees smallest increase among major cities.

Construction cranes dot the skyline as condo towers are seen under construction at the Oakridge Park shopping centre redevelopment, in Vancouver, on Nov. 23, 2023. Toronto had the smallest rental price increase among Canada's largest markets, and Vancouver, Montreal and Calgary each had smaller rental rate increases this year compared with 2023.

A flood of new rental units slowed the pace of apartment rent increases this year, and that trend is likely to continue in 2025 with another wave of apartment buildings under construction. The average monthly rent of a two-bedroom rental apartment across the country was \$1,447 in October, up 5.4 percent from 2023, according to the annual rental report from Canada Mortgage and Housing Corporation (CMHC), released Tuesday. That compared with an increase of 8 percent from 2022 to 2023. Among the country’s largest rental markets, Toronto had the smallest increase, with the average monthly rent up by 2.7 percent in 2024. That compared with an 8.8 percent rise in 2023. Halifax’s average monthly rent climbed by 3.8 percent this year compared with 11 percent in 2023. Vancouver, Montreal and Calgary each had smaller rental rate increases this year compared with 2023, while Ottawa and Edmonton saw rental rates climb at a quicker pace than last year. CMHC said a raft of new rental apartments, also known as purpose-built rentals, kept rental rates from soaring. In most of the major cities, the volume of new purpose-built rentals was well over historical levels. At the same time, thousands of new condo units also came onto the market. (Condos are individually owned, and investors buy them for either price appreciation or rental income.) CMHC said rental rates are not increasing as quickly in the newer purpose-built rental buildings, which cater to higher-income households. But lower-income renters continue to be under financial duress. The arrears rate, when a tenant is at least one month behind on the rent, was

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 31. in ZA
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Victoria Surpasses Toronto as Second Most Expensive Rental Market in CanadaHigh demand for rentals in Victoria has pushed average rental costs higher, causing the city to surpass Toronto for the second most expensive rental market in Canada.
Source: CHEK_News - 🏆 59. / 55 Read more »

Alberta’s booming rental market braces for changeThe province has seen more than 30,000 purpose-built rental units break ground between the first quarter of 2022 and the third quarter of 2024
Source: globeandmail - 🏆 5. / 92 Read more »