Rental housing costs in Canada continued to rise in every province in 2011. Buoyed by ongoing strength in the Canadian economy and lower new rental market housing completions, Canada’s overall vacancy rate was pushed downward, putting increased pressure on rental prices.
The overall average rent for a two-bedroom unit across Canada’s 35 major city centers (CMA’s) increased by 2.2% to $883 in October 2011 from $860 in October 2010, according to the latest report released by Canada Mortgage and Housing Corporation (CMHC) on December 13, 2011.
Rental housing prices in any given region are affected by wide range of influences but the primary variable is economic. While demographic and social influences play a role, job availability, mortgage affordability and geographic demand have a direct impact on rental housing costs.
“Demand for rental condominium apartments remained strong, with the vacancy rate for such units falling in most of Canada’s largest urban centres, including Toronto, Montreal and Vancouver,” said Mathieu Laberge, Deputy Chief Economist at CMHC’s Market Analysis Centre.
Provincially, British Columbia has the highest average monthly rental rate for a 2-bedroom apartment in Canada in October 2011 at $1,050, with Quebec having the lowest at $684.
Those looking to rent a 2-bedroom apartment in Canada in October 2011 would have to pay an average monthly rent of $701 in Newfoundland and Labrador, $745 in Prince Edward Island, $882 in Nova Scotia, $687 in New Brunswick, $684 in Quebec, $1002 in Ontario, $850 in Manitoba, $913 in Saskatchewan, $1044 in Alberta and $1,050 in British Columbia.
Canadian Average 2-Bedroom Rental Cost CMHC – October 2011 vs. 2010:
| Newfoundland and Labrador | $701 | $668 | +5.0% |
| Prince Edward Island | $745 | $719 | +2.2% |
| Nova Scotia | $882 | $851 | +1.7% |
| New Brunswick | $687 | $668 | +2.2% |
| Quebec | $684 | $666 | +2.6% |
| Ontario | $1002 | $980 | +1.8% |
| Manitoba | $850 | $815 | +4.0% |
| Saskatchewan | $913 | $872 | +4.6% |
| Alberta | $1044 | $1036 | +1.3% |
| British Columbia | $1050 | $1019 | +2.2% |
| Canada – 10,000+ | $883 | $860 | +2.2% |
A closer look at average 2-bedroom rental rate figures in 2011 and 2010 reveals rental costs have progressively risen over the past two years across every province in Canada.
Canadian Average Monthly 2-Bedroom Rental Cost CMHC – 2011 and 2010:
| Newfoundland and Labrador | $701 | $683 | $668 | $640 |
| Prince Edward Island | $745 | $752 | $719 | $707 |
| Nova Scotia | $882 | $848 | $851 | $842 |
| New Brunswick | $687 | $672 | $668 | $659 |
| Quebec | $684 | $671 | $666 | $650 |
| Ontario | $1002 | $980 | $980 | $978 |
| Manitoba | $850 | $822 | $815 | $796 |
| Saskatchewan | $913 | $883 | $872 | $857 |
| Alberta | $1044 | $1029 | $1036 | $1023 |
| British Columbia | $1050 | $1015 | $1019 | $983 |
| Canada – 10,000+ | $883 | $839 | $860 | $848 |
The highest monthly rental rate increase in Canada for an average 2-bedroom apartment over the past year as of October 2011 was a +5.0% increase in Newfoundland and Labrador with the lowest increase occurring in Alberta were rental rates increased only +1.3%.
On a provincial basis as of October 2011, average 2-bedroom rental rates in Canada increased by +5.0% in Newfoundland and Labrador, +2.2% in Prince Edward Island, +1.7% in Nova Scotia, +2.2% in New Brunswick, +2.6% in Quebec, +1.8% in Ontario, + 3.2% in Manitoba, +4.0% in Saskatchewan, +1.3% in Alberta and +2.2% in British Columbia.
Canadian Provincial Rental Rate Summary – October 2011:
- Newfounland and Labrador – Provincial Average Rental Rate of $701 in October 2011 (up +5.0%) compared to $668 in October 2010.
- Prince Edward Island – Provincial Average Rental Rate of $745 in October 2011 (up +2.2%) compared to $719 in October 2010.
- Nova Scotia – Provincial Average Rental Rate of $882 in October 2011 (up +1.7%) compared to $851 in October 2010.
- New Brunswick – Provincial Average Rental Rate of $687 in October 2011 (up +2.2%) compared to $668 in October 2010.
- Quebec – Provincial Average Rental Rate of $684 in October 2011 (up +2.6%) compared to $666 in October 2010.
- Ontario – Provincial Average Rental Rate of $1002 in October 2011 (up +1.8%) compared to $980 in October 2010.
- Manitoba – Provincial Average Rental Rate of $850 in October 2011 (up +3.2%) compared to $815 in October 2010.
- Saskatchewan – Provincial Average Rental Rate of $913 in October 2011 (up +4.0%) compared to $872 in October 2010.
- Alberta – Provincial Average Rental Rate of $1044 in October 2011 (up +1.3%) compared to $1036 in October 2010.
- British Columbia – Provincial Average Rental Rate of $1050 in October 2011 (up +2.2%) compared to $1019 in October 2010.
The CMHC Spring Rental Market Survey found that overall, the average rent for two-bedroom apartments in existing structures across Canada’s 35 major centres increased 2.2% between October 2010 and October 2011, slightly lower than the 2.4% that was observed between October 2009 and October 2010.
A rental unit is considered available by the CMHC survey if the unit is vacant (physically unoccupied and ready for immediate rental), or if the existing tenant has given or received notice to move out and a new tenant has not signed a lease.
| References: |
| 1. http://www.cmhc-schl.gc.ca/en/index.cfm |
