Alberta held its lead as the province with the fastest-growing rent in the country, increasing by 20% since March of last year, according to a report by Urbanation on rentals.ca.
True North previously reported that average rent in Canada increased 9% in 2023 to a record-high of $2,178 in December 2023.
Among the country’s municipalities, Calgary posted annual rent growth of 14% between December 2022 and 2023, following Quebec City at 18.9%. Calgary’s rent also increased by 22.6% in 2022.
While Edmonton’s rent prices were lower than Calgary’s, they rose by 13.5% between December 2022 and 2023.
The trend has seen Alberta’s two largest cities rank high, though Edmonton’s price increase has now surged ahead of Calgary’s.
Between March 2024 and 2023, Calgary’s average rent has increased by 10.6%. Edmonton’s average rent has increased by 17.3%, greater than any other of the country’s largest cities.
In 2023, the population of people aged 15 to 24, a key demographic in the rental market, saw a notable increase. Alberta, in particular, experienced a growth rate that was over double the national average in this age group. The province’s allure for this demographic was further enhanced by the promise of job opportunities and more affordable living conditions, drawing a significant number of interprovincial migrants.
Despite the large percentage increase in rents in Calgary and Edmonton, they remain ranked 16th and 23rd, respectively, for price ranking from a dollar perspective, out of Canada’s 25 largest municipalities.
The average rent in Edmonton is $1,489/mo, less than half of Vancouver’s $3,017/mo asking price.
The three most expensive cities in Canada have all seen decreases in average rent costs since March of last year. Vancouver’s average rent decreased by 3.3%, while Burnaby and Toronto decreased by 0.8% and 1.3%, respectively.
The least expensive municipality listed in the report is Saskatoon, with an average annual rent of $1,278, despite having increased 10.4% since last March.
Tracked in four provinces, roommate listings increased by 72% in B.C., Alberta, Ontario, and Quebec in February 2024 compared to the same month the year prior.
Conservative leader Pierre Poilievre commented on the new data in a post to X.
“More renters are choosing studios or roommates because they can’t afford housing,” he said.
Canada’s rental vacancies decreased to a historic low of 1.5% in 2023, according to a study by Canada Mortgage and Housing Corporation.
“Lower-income renters have been disproportionately impacted by the below-average vacancy rates, exacerbating the affordability crisis,” said the CMHC.
The study pointed to employment growth, demographic growth, and the low affordability of homes as causes for an increased demand in the rental market.
Despite an increase in housing supply, it has lagged behind the increase in demand, leading to a more competitive rental market and a decline in housing affordability.
The data comes as legislature debates Bill 205, a proposed annual rent cap increase introduced by Alberta’s NDP. The legislation seeks to limit rent increases to 2% for two years, tying increases to the Consumer Price Index for a maximum of 5% in the following years. Critics, including the UCP, argue the bill might inadvertently heighten homelessness by incentivizing landlords to evict.
If a tenant’s rent agreed upon at the start of the lease was $1,500/mo, but the market supported $1,750/mo by the end of the lease, a rent cap of 2% would not support such an increase. Landlords would subsequently find a new tenant and increase the lease to support the market price.
Trevor Adams, an Albertan landlord, said the bill would do the opposite of what it intends because it would reduce supply. His sister had a rental in Comox, B.C. A rental cap was introduced, and she could not raise rent to offset costs, so she decided to sell the home as it became too expensive to rent.
Alberta’s Seniors, Community, and Social Services Minister Jason Nixon agreed that implementing rent caps in a province with an existing supply issue would result in more homeless people.
“Every jurisdiction that went down that road of rent control has been a disaster. There’s not a major economist anywhere in this country calling for rent control because it does not work,” he said.
