Apartment rent growing faster than condo rent as new supply comes online: report
The Canadian rental market is showing signs of divergence, with purpose-built rental apartment rents accelerating more quickly than those for condominium units.
According to a report by Urbanation, which analyzes monthly listings from the website Rentals.ca, purposebuilt units experienced a 12.7 per cent year-over-year price increase in March, averaging $2,117.
In contrast, condominium rentals grew at a more modest rate of 3.9 per cent, reaching an average of $2,321.
The report said that the divergence in growth rates can be attributed to factors such as record-high condominium completions in certain markets leading to increased supply, limiting rent growth in that segment.
However, Urbanation president Shaun Hildebrand said that overall rents, which increased by 8.8 per cent to $2,181 in March, should be stabilizing.
“As population growth slows with caps on non-permanent residents and supply increases as rental completions continue to rise, rent growth should continue to moderate towards more sustainable levels,” Hildebrand said in the report.
The report also highlighted regional disparities in rent trends, with Vancouver and Toronto witnessing declines in average asking rents to $2,993 and $2,782, respectively.
The regions remained the most expensive places to rent in Canada despite the decreases.
Quebec City’s average rent growth was the fastest in Canada at 19.3 per cent, pushing rents to $1,569. Saskatoon was another frontrunner with a 15.1 per cent annual growth rate.
Shared accommodation rents also continued their upward trend in March, maintaining an average above $1,000 for the fourth consecutive month. British Columbia led the way with record-high average rents of $1,195, followed by Ontario at $1,089. Quebec and Alberta had average asking rents of $900 and $876, respectively.
Roommate rents were highest in Canada’s priciest urban centres, Vancouver and Toronto.
“Unsurprisingly, the most expensive of Canada’s largest cities had the highest asking roommate rents, averaging $1,416 in Vancouver and $1,273 in Toronto,” the report said.