Average Canadian Rent Prices Revealed for January
In January 2023, average rent prices across Canada revealed a notable decline. The average asking rent dropped to $2,057, a two percent decrease from the previous year. This marks the 16th consecutive month of annual rent decreases, showcasing a broader trend in the rental market.
Significant Changes in Rental Prices
According to a report by Rentals.ca and Urbanation, January’s rental prices reached their lowest level in 31 months. Compared to two years ago, rents plummeted by 6.3 percent, although they remain 12.9 percent higher than the levels before the COVID-19 pandemic. This shift signals improving affordability for renters.
For the first time in six years, the average rent-to-income ratio dipped slightly below 30 percent. Shaun Hildebrand, president of Urbanation, emphasized this improvement, stating, “More supply brings down costs.” He suggested this trend may attract more renters in the year ahead, despite slowing population growth.
Factors Affecting Rent Prices
A significant contributor to the decline in average rents has been the shrinking size of rental units. The average size of listings fell to 857 square feet in January, down from 885 square feet the previous year.
- Average rent for condo units: $2,093 (down 5.7% year-over-year)
- Average rent for houses and townhouses: $2,078 (down 3.1%)
- Average rent for purpose-built units: $2,049 (down 1%)
- Three-bedroom rentals: $2,506 (up 1.1% annually)
- Three-bedroom purpose-built rentals: $2,756 (up 3.9% annually)
Provincial Trends in Rental Prices
Average apartment rents saw the most significant declines across various provinces:
| Province | Average Rent Change (%) |
|---|---|
| British Columbia | -4.7% |
| Alberta | -4.3% |
| Ontario | -3.3% |
| Quebec | -2.6% |
All six of Canada’s largest rental markets experienced annual rent declines in January.
- Vancouver: $2,630 (down 9.2%)
- Calgary: $1,815 (down 5.7%)
- Toronto: $2,495 (down 4.6%)
- Ottawa: decline of 4.8%
- Montreal: decline of 3.7%
- Edmonton: decline of 2.6%
This report paints a promising picture for rental affordability in Canada, indicating positive trends amid ongoing market shifts.
