Canada’s average rent saw record growth in 2023 as demand outpaced supply, while the rental vacancy rate reached a record low of 1.5 per cent, a new report shows.
Released Wednesday, the annual report from the Canada Mortgage and Housing Corp. (CMHC) said the national vacancy rate for purpose-built rental units last year was the lowest since 1988, when the organization began recording the metric. The federal housing agency uses purpose-built rentals as its representative sample.
By comparison, the vacancy rate for those units was 1.9 per cent in 2022, which at the time was the lowest rate seen in more than two decades.The national vacancy rate reflects the percentage of unoccupied and available residential units across the country.
A lower rate typically means greater competition among renters and a higher incentive for unit owners to raise their rates.
For two-bedroom condominiums up for rent, the average vacancy rate fell from 1.6 per cent in 2022 to 0.9 per cent in 2023.
“While the recent revival of rental construction has been encouraging, it was evidently not enough to ease the market and curb steep rent increases,” the report reads.
Rent outpacing inflation
Rent prices soared in most markets, consistent with the observed decline in vacancy rates.
Growth in the average rent for two-bedroom purpose built apartments accelerated “sharply” to a record eight per cent in 2023, in a jump that outpaced both inflation (4.7 per cent) and wage growth (five per cent).
That left renters paying, on average, $1,359 per month for those units last year.
That growth figure was up from the 5.6 per cent rent growth recorded in 2022 and well above the 2.8 per cent growth documented from 1990-2022.
Meanwhile, the average rent for two-bedroom condos was $2,049 in 2023, up $1,929 from the previous year. This represented a six per cent increase.
Not all markets impacted equally
Lower-income renters faced significant competition in their hunts for affordable rates. In some cities, finding affordable units was next to impossible.
For a rate to be considered affordable, it should cost less than 30 per cent of a renter household’s before-tax income, the federal housing agency said.In Vancouver, Ottawa and Toronto, the proportion of rental units considered affordable for the bottom 20 per cent of earners was “statistically zero,” the report notes.
In Edmonton, those units made up 12.7 per cent of total spaces. In Calgary, 3.1 per cent of apartments were considered affordable for low-income renters.In Montreal, 18.1 per cent of units were available at affordable rates for low-income earners. However, many of those units were either bachelor or one-bedroom units, which could be unfit for families.
As for vacancy rates, Calgary and Edmonton saw steep declines. Their vacancy rates fell from 2.7 in 2022 to 1.4 per cent in 2023, and 4.3 to 2.4 per cent over the same period, respectively.
Vancouver remained the tightest rental market in the country, with a vacancy rate of 0.9 per cent, unchanged from 2022. Ottawa’s vacancy rate also remained the same as the 2022 level, sitting at 2.1 per cent.
In Toronto, Canada’s largest city, the vacancy rate dropped from 1.6 to 1.4 per cent. Meanwhile, in Montreal, the rate fell from two per cent to 1.5 per cent.
Vancouver remains the most expensive rental market, with $2,181 being the average monthly rent for a two-bedroom purpose-built apartment, followed by Toronto, where the average rent for those units was $1,961 in 2023.
The least expensive apartments are concentrated in Quebec, exemplified by Montreal’s relatively low 2023 average two-bedroom rent of $1,096.
Immigration, other factors impacting demand
Immigration led to increased demand in the rental market in most large centres, while high interprovincial migration contributed in Alberta, CMHC said.
With net immigration to Canada trending sharply higher since 2020, there was increased pressure on the rental markets of Toronto, Montreal and Vancouver, cities that are also the destination for many international students.
In Edmonton and Calgary, the influx of interprovincial migrants — people who move from one province to another — led to increased demand.
The report suggests people are likely drawn to Alberta — at least partly — by the relatively strong employment growth in Calgary and Edmonton as well as lower home prices relative to Toronto and Vancouver.
Employment growth among young Canadians and the low affordability of homeownership also led to increased demand in the rental market overall.
Toronto Blue Jays shortstop Bo Bichette returned to the 10-day injured list Thursday due to a right middle finger fracture.
The move, retroactive to Wednesday, essentially ends an injury-plagued season for Bichette.
He had two hits and one RBI in a 13-8 loss to Texas on Tuesday in his return from a 52-game stint on the IL with a right calf strain.
Bichette also missed nine games due to the calf issue in June.
His latest injury was suffered Wednesday during infield practice. Bichette was a late scratch in a 2-0 loss to the Rangers.
Bichette hit four homers with 31 RBIs in 81 games this season. He posted a .225 batting average and a .322 slugging percentage.
The Blue Jays also recalled outfielder Jonatan Clase from Triple-A Buffalo. He was active for the series finale against the Rangers on Thursday afternoon, the team said.
This report by The Canadian Press was first published Sept. 19, 2024.
Falcons wide receiver Drake London was penalized after catching a touchdown pass in the final minute of Atlanta’s 22-21 victory in Philadelphia on Monday night for pretending to shoot in the air, a violation of a longstanding NFL rule that prohibits violent gestures.
London immediately apologized on the sideline, according to Falcons coach Raheem Morris, and did it publicly on Wednesday.
“There’s a lot of stuff going around in the world with gun violence that I don’t think I should have displayed there,” London told reporters. “So, I’m not too happy with it, and (you) probably won’t see that again from me.”
The NFL has strict rules for celebrations and players are reminded annually that violations will result in unsportsmanlike penalties.
London’s 7-yard TD catch on a pass from Kirk Cousins tied the score at 21-21. His penalty pushed the extra point back 15 yards but Younghoe Koo made it from 48 yards out to give Atlanta a lead and Jessie Bates intercepted Jalen Hurts’ pass on the ensuing drive to seal the victory.
“We approach player celebrations as expressions of exuberance that are part of the excitement of the game. Rules were modified in 2017 that permitted group celebrations, including choregraphed demonstrations. Offensive demonstrations, celebrations that are prolonged and delay the game, and those directed at an opponent are still penalized,” NFL spokesman Brian McCarthy said in a statement. “Players are reminded annually and it’s part of the player manual that demonstrations that constitute taunting or unsportsmanlike conduct, or delays the game, will result in a foul against his team.
“Also prohibited acts that occur anywhere on the field or sideline include longtime prohibitions against throat slash; machine gun salute; sexually suggestive gestures; or stomping or demonstrations on a team logo.”
London’s celebration came 12 days after four people were killed in a shooting at Apalachee High School near Winder, Georgia. The Falcons hosted the school’s football team at their practice facility last week.
LANGLEY, B.C. – Police in Langley, B.C., say one person is dead in an early morning crash between a car and a motorcycle on Highway 1.
Mounties say their initial investigation indicates both vehicles were travelling east when they collided shortly before 4:20 a.m. near 240 Street on the highway.
The motorcycle rider died from their injuries.
The eastbound lanes of the highway remain closed between 232 and 264 streets.
RCMP say their integrated collision analysis reconstruction team was at the scene.
The Mounties are asking anyone who witnessed the crash or who may have dash-camera footage from the area to call them.
This report by The Canadian Press was first published Sept. 19, 2024.
