Calgary rental prices rise 22% in a year: National Rental Report

A sunny, warm week is forecast for Calgary

A new report released Tuesday confirmed what Calgary renters already know: the cost of renting an apartment in the city is skyrocketing.

The National Rental Report said that Calgary's rental markets have increased an average of 21.9 per cent over the past year, averaging $1, 572 for one-bedrooms and $1,978 for two-bedrooms, ranking third among major Canadian cities (over one million people) behind Vancouver and Toronto.

On a list of 35 rental markets across the country, Calgary ranked 25^th.

Montreal, which is Canada's largest rental market, had the lowest annual rent increase at 7.6 per cent, and now has average rents close to the same as Calgary's ($1,574 for one-bedroom and $1,978 for two-bedrooms).

The average monthly cost to rent a home in Canada rose to a record $2,024 in November, new data shows, and experts say this trend is showing no signs of stopping.

The report said the average price for rent in November was up 2.5 per cent compared with the month before.

On average, Canadian renters are paying $224 more per month compared with a year ago, for a gain of 12.4 per cent. 

According to the report, the average cost of rent surpassed pre-pandemic prices by 10.5 per cent.

While the average price for a one-bedroom rose 8.3 per cent in November to $1,710, two-bedroom rentals had the biggest spike, up 11.7 per cent from last year to $2,090. 

“Rents in Canada are rising at an exceptionally high speed, which is having a profound effect on housing affordability as interest rates continue to rise," said Shaun Hildebrand, president of Urbanation, in a news release.

Vancouver remains the most expensive place to rent in Canada, with the average price of a one-bedroom now at $2,633 per month. 

Toronto was second on the list of 35 cities with the average price for a one-bedroom apartment at $2,532 and $3,347 for a two-bedroom. 

Contributing to the steep costs is the high demand for rental properties and low supply among Canada's most expensive cities, said Hildebrand.

Nova Scotia had the highest annual rent increase, up 24.9 per cent from a year ago, and remains the third most expensive province to rent at $1,937 for a one-bedroom, after British Columbia and Ontario.

"Regions with high population growth are seeing demand shift into more affordable areas," said Hildebrand. 

The report was based on data collected by Rentals.ca and Urbanation from monthly online listings.

This report by The Canadian Press was first published Dec. 14, 2022.