Rent prices moderated slightly in November, but remain 8% higher compared to a year ago and over 20% from two years ago.

The average rent price for all unit types eased slightly to $2,174, according to data from Rentals.ca‘s latest monthly data. That’s down 0.2% compared to October, but just $4 off its all-time high.

“Rent inflation in Canada is slowly starting to moderate, a trend being led by a notable slowdown in rents in the country’s most expensive big cities of Vancouver and Toronto,” said Shaun Hildebrand, president of Urbanation, which co-released the report. “Renters are adjusting to record-high housing costs by shifting into less expensive markets.”

Rent price growth was strongest for one-bedroom apartments (+13.6% year-over-year) and studio apartments (+12.1%), while two-bedroom apartments saw an easing in growth to +11.2%.

There were also vast regional differences, with rents for one-bedroom apartments up 45.9% year-over-year in Waterloo, ON, but down 2.3% and 1.5% in nearby Guelph and Kitchener, respectively.

High rents a leading contributor to inflation

The steep rise in both rent and home prices has become a leading contributor to overall inflation.

Despite an overall decline in headline inflation in October as reported by Statistics Canada, the index continued to face upward pressure primarily from rent price growth and mortgage interest costs.

Rent price growth was up by an annualized 8.2%, up from +7.3% in September, StatCan reported. Growth was highest in Nova Scotia (+14.6%), Alberta (+9.9%), British Columbia (+9.1%) and Quebec (+9.1%).

On a monthly basis, rent prices surged by 1.4%, the largest monthly rise since 1983.

Like renters, mortgage borrowers are also feeling the impact of rising costs with a 2.5% monthly increase in mortgage interest costs, or +30.5% year-over-year.

B.C. sees rents ease while growth continues in Alberta

Rentals.ca reported that in November, Alberta once again posted the fastest year-over-year increase in rent prices, which were up 16.1% to $1,695.

Quebec (+10.9%) and Nova Scotia (+9.9%) also continued to see strong price growth, although increases have started to moderate.

In British Columbia, rent price growth fell 2.2% on a monthly basis, with annualized growth easing to +6.5% from +9.8% in September, Rentals.ca noted.

Slowdown in rent prices in Toronto and Vancouver

Canada’s most expensive markets saw a sharp slowdown in price growth in November, with asking rents rising just 0.7% in Vancouver and Toronto’s asking rent falling for the second straight month by 2.4%.

Montreal also saw a slower rate of increase compared to previous months.

Here’s a look at the year-over-year rent increases in some of the country’s key markets:

• • Regina, SK: +13.4% ($1,295)
  • Calgary, AB: +10.4% ($2,081)
  • Montreal, QC: +8.5% ($2,048)
  • Ottawa, ON: +6.8% ($2,238)
  • Winnipeg, MB: +4.3% ($1,536)
  • Vancouver, B.C.: +0.7% ($3,171)
  • Toronto, ON: -2.4% ($2,913)

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Last modified: December 12, 2023