Lease costs resumed their upward trajectory in December, ending the yr 8.6% greater from a yr in the past.
The common hire worth for all unit varieties rose to $2,178, in accordance with knowledge from Leases.ca‘s newest month-to-month knowledge. Wanting again over the previous two years, hire costs have risen 22%, or a median of $390 a month.
“The speed of hire development in Canada was stronger than anticipated in 2023, primarily resulting from a surge in non-permanent residents, a resilient financial system, and a pointy pullback in house shopping for exercise,” mentioned Shaun Hildebrand, President of Urbanation.
“Whereas rents are anticipated to proceed rising in 2024, there needs to be much less upward strain in the marketplace this yr as demand will increase at a considerably slower pace and extra provide is added.”
2024 rental market outlook: count on extra average development
In its report, Leases.ca forecasts 2024 to be extra balanced, with annual hire worth development moderating nearer to its 5-year common of round 5%.
Extra inexpensive markets, like Alberta, ought to see above-average hire will increase all year long, whereas costlier markets, together with B.C. and Ontario, are more likely to see rents develop under the nationwide common.
Nonetheless, Leases.ca says the nation’s rental market is more likely to stay under-supplied.
“Rental demand is predicted to stay sturdy, experiencing some moderation in comparison with 2023 resulting from a slowing financial system, a diminished variety of non-permanent residents, and an enchancment in homebuying exercise as rates of interest start to say no,” the report notes.
It added {that a} continued rise in residence completions and an anticipated improve in tenant turnover this yr “ought to add extra provide to the market within the close to time period and assist mood hire development.”
Alberta noticed quickest development in hire costs
Alberta as soon as once more posted the quickest year-over-year improve in hire costs, which have been up 15.6% to $1,691 in December.
Quebec (+10%) and Saskatchewan (+10%) additionally continued to see sturdy worth development within the yr.
Lease costs have been decrease in Nova Scotia (-2%) in December, though this adopted a 31.4% hire worth surge within the earlier yr. Rents have been additionally down barely in British Columbia (-1.4%), which stays the nation’s most costly rental market with a median asking hire of $2,500.
Slowdown in hire costs in Toronto and Vancouver
Cities in Western Canada continued to see the quickest tempo of hire worth development in December, except Quebec Metropolis, the place rents have been up 18.9%. In Calgary, rents rose 14% year-over-year, adopted carefully by Edmonton, the place rents rose 13.5%.
Canada’s most costly markets continued to see a moderation in hire worth development, with asking rents rising simply 2.1% in Toronto and down 0.7% in Vancouver.
Right here’s a take a look at the year-over-year hire will increase in among the nation’s key markets:
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- Calgary, AB: +14% ($2,071)
- Regina, SK: +13.3% ($1,293)
- Montreal, QC: +11.3% ($2,019)
- Ottawa, ON: +7.5% ($2,228)
- Winnipeg, MB: +5% ($1,558)
- Toronto, ON: +2.1% ($2,832)
- Vancouver, B.C.: -0.7% ($3,059)
