The cost of living continues to be a concern for Canadians, and rental rates across the country reached record-breaking levels throughout 2023. According to Rentals.ca’s National Rent Report for January 2024, the average rent for all residential property types in Canada ended 2023 at a record high of $2,178 for December 2023. This was an increase of 8.6 per cent from December 2022 when the average was sitting at $2,005.
If you have a move coming up and haven’t been keeping tabs on market rates, let’s break down the average cost of renting a one-bedroom apartment in Canada right now.
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In the January 2024 National Rent Rankings, the average cost of a one-bedroom apartment in Canada was $1,922, up 13.4 per cent year over year.
The city with the most significant increase was Brampton, ON, seeing an 18.5 per cent jump to $2,117 in December 2023 when compared to the same time period one year prior. Scarborough, ON followed closely behind with the average cost of a one-bedroom apartment sitting at $2,209 — a 17 per cent hike. The third highest increase was in Laval, QC, where a one-bedroom apartment was $1,653, up 16.2 per cent.
The Average Cost to Rent a One Bedroom in Major Canadian Cities, 2024:
- Vancouver, BC: $2,700 (4 per cent increase year over year)
- Toronto, ON: $2,521 (2.6 per cent increase)
- Edmonton, AB: $1,285 (15.4 per cent increase)
- Calgary, AB: $1,708 (14.1 per cent increase)
- Regina, SK: $1,213 (13.6 per cent increase)
- Winnipeg, MB: $1,340 (9.7 per cent increase)
- Montreal, QC: $1,741 (10.2 per cent increase)
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While rental rates were up overall across the country, some cities saw a decrease in the cost of a one-bedroom apartment for rent. For instance, Halifax, NS rates decreased by 7.4 per cent, with an average one-bedroom rental price of $1,841. Kelowna, BC also showed a drop of 4.3 per cent, with average rates closing out 2023 at $1,897. The largest decrease was in the border city of Niagara Falls, ON, where rents decreased by 11.5 per cent, bringing the rental rate down to $1,636.
What is the Outlook for Rental Rates in 2024?
According to Rentals.ca, “The rental market in Canada will remain undersupplied but should become somewhat more balanced this year, with rent growth expected to converge towards its five-year average of approximately 5 per cent.”
Demand for rental apartments is expected to remain strong with some moderation as compared to 2023, due to factors like a sluggish economy, a reduced number of non-permanent residents and an increase in homebuyers as interest rates decline. A rise in apartment completions and expected tenant turnover should add more units. Alberta is predicted to continue showing above-average rent increases, while large cities in British Columbia and Ontario will continue with increases below the national average.
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