Last Updated On 6 June 2024, 9:03 PM EDT (Toronto Time)

A recent survey has revealed that the average rent in Canada has reached an all-time high, breaking previous months’ record highs, which is pinching renters all over the country.

The average rent for a residence in Canada reached a record $2,202 in May, up 9.3% from a year ago and 0.6% from the month before, according to a report published on June 6, 2024.

The report, which Urbanation and Rentals.ca produced, discovered that the average asking rental price had previously exceeded $2,200 by looking at monthly listings from Rentals.ca’s network.

According to the survey, in May, the average asking price for a two-bedroom apartment was $2,334, up 12.1 percent from the same time last year, while the average asking rent for a one-bedroom apartment was $1,927.

Province-Wise Average Rent in Canada

Though the national average rent is at an all-time high, the situation differs drastically within the provinces.

Being one of the priciest provinces to rent in, Ontario charges an average of $2,479 for a one-bedroom apartment.

The average rent in Quebec, meanwhile, is $1,999, much less than the national average.

The asking rent for apartments and condos in Alberta have increased startlingly by 17 percent year over year to $1,787.

But Atlantic Canada, at $2,067, was up 15% from the previous year.

The position of the Canadian rental market is also highlighted in the paper. All told, purpose-built apartment asking rentals rose 13.7% in May from the same time last year to $2,146 on average.

Rents for condominium apartments, which averaged $2,312, up 3.4 percent, increased four times as quickly.

Year over year, asking rents for purpose-built and condo rentals increased in every province, with Saskatchewan leading the way at 21.4% to $1,334.

Impact on Renters

Renters all around the nation are feeling the pinch of rising rent costs. Ipsos recently polled Canadians for Global News and found that eighty percent of respondents believed that property ownership was only for the wealthy.

From a comparable poll taken in March 2023, more than a year ago, this feeling is up 11 points.

The high cost of renting has also forced many Canadians to make compromises in other areas of their lives.

While some have had to take on more jobs to make ends meet, others have had to cut back on spending.

Low-income workers and those on fixed incomes, who are finding it difficult to keep up with the growing cost of living, are in very bad shape.

Certain provinces have taken steps to lessen the load on tenants in reaction to the growing cost of rent.

The rent control mechanism that the provincial government of Ontario implemented restricts the annual rent increases that landlords are allowed to make.

Critics counter that this approach falls short in resolving the fundamental problem of the housing supply shortfall.

The Deficit in Housing Supplies

A key factor driving up rent in Canada is the dearth of available housing.

A Canada Mortgage and Housing Corporation (CMHC) study estimates that in order to bring back affordability, the nation must construct 3.5 million new homes by 2030.

But building has been proceeding slowly, and the government’s attempts to increase the supply of homes have yielded conflicting outcomes.

The fact that May’s average rent set a new record high brings home the nation’s housing crisis.

Renters are under stress from the growing cost of living; thus, the government must move decisively to solve the housing supply issue and guarantee that all Canadians have access to reasonably priced homes.

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Gagandeep Kaur Sekhon

Gagandeep Kaur Sekhon moved to Canada in 2010 on a study visa. She navigated through the ups and downs of her student life and gained her permanent residency in 2015. Today, she is a proud Canadian citizen residing in Calgary, Alberta. She is mother of 2 beautiful daughters and making her difference through writing and guidance at INC – Immigration News Canada.