A new report says rental rate increases are starting to level out, a welcome sign for the nearly 40 per cent of Canadians concerned about their ability to afford housing because of rising prices.
The average rent in Canada grew by 3.3 per cent year-over-year in August, the slowest annual growth in nearly three years, according to a report from Rentals.ca and Urbanation.
“Rent increases in Canada finally returned to their longer-term average after nearly three years of excessive growth,” said Urbanation president Shaun Hildebrand.
“This was achieved through a combination of more supply being built, as well as a rollback in demand from population-related changes in government policies.”
The report notes that this year apartment completions reached their highest total in decades, while population growth has slowed.
Both B.C. and Ontario recorded annual rent decreases, as did five of the six largest markets. For the first time since 2021, asking prices dipped in Calgary in August, while Edmonton’s average rent grew by 9.2 per cent.
Though the slowdown in rent prices offers some reprieve to tenants, it is unlikely the market moderation in August will counterbalance the last few years of double-digit housing costs inflation. According to data from Statistics Canada, 38 per cent of Canadians say they are worried about their ability to pay their rent or mortgage because of rising prices.
Newfoundland and Labrador reported the lowest level of concern, with 29 per cent saying housing costs are a problem, and B.C. appears to be struggling the most with 42 per cent.
Albertans were in the middle of the pack, matching the national average, a statistic that is surprising considering the drastic increases in rent observed in the province recently, said Alicia Planincic, an economist with the Business Council of Alberta.
Housing market pressures have been felt more by renters in Alberta, but the province has relatively high home-ownership rates and affordable real estate, Planincic said.
“In a sense, it is still much more affordable rent or owning a home in Alberta versus, especially versus the Vancouvers and Torontos of Canada, but we have seen prices rise faster,” she said.
“I think that has certainly been proven to be a factor in terms of why folks are moving to Alberta. So, maybe folks just aren't feeling it quite as much here in terms of their mortgages.”
A recent study from calgaryhomes.ca ranked Alberta the most affordable province for homeowners.
