Canada rent hit a new high in July as students prepped for school, buyers sidelined: report

A new report says Canada’s average asking rent reached a new record in July.

Data from Rentals.ca and research firm Urbanation says the average asking rent totalled $2,078 in the month.

That total is 8.9 per cent higher than a year earlier, making it the fastest pace of growth over the past three months.

Between June and July alone, the average asking rent rose 1.8 per cent, the most rapid month-over-month increase in the last eight months.

Compared to July 2021, the average asking rent increased by 21 per cent, adding $354 per month on average.

Rentals.ca and Urbanation attributed the rise to a surge in post-secondary students signing leases before the fall, unprecedented levels of population growth, and homebuyers holding off on purchases as interest rates have risen.

“Canada’s rental market is currently facing a perfect storm of factors driving rents to new highs,” said Shaun Hildebrand, president of Urbanation, in a news release.

“These include the peak season for lease activity, an open border policy for new residents, quickly rising incomes, and the worst ever home ownership affordability conditions.”