Canada’s landlords are now asking a record-breaking average of $2,117 per month, according to a new report compiled by a Canadian rental listings website.
According to Rentals.ca, the Canadian market reached a new record when it comes to what new tenants are asked to pay per month, with data suggesting a monthly increase of 1.8 per cent in August, and an annual surge of 9.6 per cent.
Amidst the backdrop of high interest rates and soaring expenses impacting property owners and overall cost of living, the rental market continues its upward trajectory, those behind the report said.
In July, the market saw a 1.8 per cent increase in the average asking rent, pushing it to an average of $2,078 for the month. The metric, which is based on new listings, not what existing tenants are paying per month, underscores the ongoing challenges faced by renters in Canada.
Rentals.ca’s recent report, indicates that while the annual inflation rate for asking rents in August was actually lower than the 12.0 per cent increase recorded in August 2022, this rate still reached a four-month high last month.
According to the report, from May to August, asking rents have experienced a 5.1 per cent increase, resulting in an average of $103 extra per month.
Despite a surge in rental apartment construction in Canada over the past year, the highest since the 1970s according to Rentals.ca, rent prices have stayed strong, the report shows. Those behind it say this is due to record population growth and declining affordability for homeownership, both of which mean more people are looking for rental units.
When it comes to rental types, studios experienced the most rapid month-over-month rent increase, rising by 2.4 per cent to an average across Canada of $1,480. Meanwhile, one-bedroom units saw the highest year-over-year growth in asking rents, surging by 14.8 per cent to an average of $1,880 per month.
Two-bedroom asking rents averaged $2,233, marking a 12.3 per cent year-over-year increase, while three-bedroom asking rents averaged $2,448, with a 10.6 per cent year-over-year growth.
Asking rents for purpose-built and condominium apartments averaged a record high of $2,046 in August, increasing 1.9 per cent month-over-month and 12.8 per cent year-over-year.
ALBERTA MAINTAINS TOP SPOT FOR RENT GROWTH
Breaking down the data by region, Alberta maintained its position as the provincial leader in annual rent growth for purpose-built and condominium apartments for the fourth consecutive month, Rentals.ca said.
The average asking rent in Alberta rose 15.6 per cent year-over-year, now standing at $1,634. Alberta rent also grew the fastest of all the provinces month-over-month, at 3.5 per cent in August.
Following Alberta, Quebec maintained the second-highest annual rent growth in the country, at 14.2 per cent, for the third consecutive month. The average asking rent for purpose-built and condominium apartments in Quebec reached $1,932.
In August, B.C. witnessed a significant annual rent growth of 10.8 per cent, up from its 9.8 per cent pace in July. Average asking rent in B.C. has now reached $2,675, meaning new renters are asked to pay an average of $1,041 more on the West Coast than in Alberta.
The average asking rent in Ontario stood at $2,496 in August, reflecting an annual increase of 9.9 per cent, which was slightly higher than the 9.0 per cent annual growth observed in July.
Meanwhile, Manitoba and Saskatchewan experienced the slowest rent increases over the past year, with annual growth rates of 8.3 per cent and 2.7 per cent, respectively. This led to average rents of $1,457 in Manitoba and $1,102 in Saskatchewan.
CALGARY LEADS RENT GROWTH IN LARGE CANADIAN CITIES
Among Canada’s largest cities, Calgary maintained its position as the leader in rent growth, with a year-over-year increase of 17.23 per cent in August. The average rent for purpose-built and condominium apartments in Calgary reached $2,068.
Montreal followed closely with an annual growth rate of 16.4 per cent, and asking rents surpassed the $2,000 mark for the first time, reaching $2,001.
In Canada’s priciest cities, Toronto and Vancouver, annual rent increases were below the national average at 8.7 per cent and 7.3 per cent, respectively. This led to average monthly costs of $2,898 in Toronto and $3,316 in Vancouver. Surprisingly, Vancouver experienced a 0.7 per cent decrease in average rents on a monthly basis.
According to the Rentals.ca report, Canada’s largest cities witnessed the strongest month-over-month rent growth in Ottawa, with a 4.5 per cent increase, and Edmonton, with a 4.1 per cent increase.
The average asking rents in these cities were $2,226 in Ottawa and $1,438 in Edmonton, respectively.
When it comes to mid-sized markets, the report shows that some of the country’s most expensive mid-sized markets had among the fastest rising rents during August.
Richmond, B.C., led the way with the highest annual growth in average asking rent, surging 28.1 per cent. This increase brought the average rate to $3,120, making it the third highest among Canada’s mid-sized markets.
Oakville, Ont., recorded a 23.1 per cent annual rent increase, reaching $3,007, ranking it as the fourth highest in Canada.
Meanwhile, Burnaby, B.C., saw rent increase by an average of 21.1 per cent year-over-year to $3,152, making it the second highest in the country. North Vancouver, B.C., had the highest average asking rent among Canada’s mid-sized markets at $3,541, with an annual increase of 17.0 per cent.
SHARED ACCOMMODATION RENT SOARS
According to the rentals report, shared accommodations experienced significant rent increases in August. For instance, there was a 24 per cent year-over-year increase in average asking rents for shared units in Quebec, a 20.5 per cent increase in Alberta, a 17.7 per cent increase in B.C., and a 7.5 per cent increase in Ontario.
The highest average asking rent for roommate rentals in Canada was in Vancouver, at $1,773 per month, followed by Toronto with an average of $1,302.
Reporting for this story was paid for through The Afghan Journalists in Residence Project funded by Meta.
TORONTO – Roots Corp. may have built its brand on all things comfy and cosy, but its CEO says activewear is now “really becoming a core part” of the brand.
The category, which at Roots spans leggings, tracksuits, sports bras and bike shorts, has seen such sustained double-digit growth that Meghan Roach plans to make it a key part of the business’ future.
“It’s an area … you will see us continue to expand upon,” she told analysts on a Friday call.
The Toronto-based retailer’s push into activewear has taken shape over many years and included several turns as the official designer and supplier of Team Canada’s Olympic uniform.
But consumers have had plenty of choice when it comes to workout gear and other apparel suited to their sporting needs. On top of the slew of athletic brands like Nike and Adidas, shoppers have also gravitated toward Lululemon Athletica Inc., Alo and Vuori, ramping up competition in the activewear category.
Roach feels Roots’ toehold in the category stems from the fit, feel and following its merchandise has cultivated.
“Our product really resonates with (shoppers) because you can wear it through multiple different use cases and occasions,” she said.
“We’ve been seeing customers come back again and again for some of these core products in our activewear collection.”
Her remarks came the same day as Roots revealed it lost $5.2 million in its latest quarter compared with a loss of $5.3 million in the same quarter last year.
The company said the second-quarter loss amounted to 13 cents per diluted share for the quarter ended Aug. 3, the same as a year earlier.
In presenting the results, Roach reminded analysts that the first half of the year is usually “seasonally small,” representing just 30 per cent of the company’s annual sales.
Sales for the second quarter totalled $47.7 million, down from $49.4 million in the same quarter last year.
The move lower came as direct-to-consumer sales amounted to $36.4 million, down from $37.1 million a year earlier, as comparable sales edged down 0.2 per cent.
The numbers reflect the fact that Roots continued to grapple with inventory challenges in the company’s Cooper fleece line that first cropped up in its previous quarter.
Roots recently began to use artificial intelligence to assist with daily inventory replenishments and said more tools helping with allocation will go live in the next quarter.
Beyond that time period, the company intends to keep exploring AI and renovate more of its stores.
It will also re-evaluate its design ranks.
Roots announced Friday that chief product officer Karuna Scheinfeld has stepped down.
Rather than fill the role, the company plans to hire senior level design talent with international experience in the outdoor and activewear sectors who will take on tasks previously done by the chief product officer.
This report by The Canadian Press was first published Sept. 13, 2024.
VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, are set to resume today as a strike that has stopped most services drags into a second week.
No timeline has been set for the length of the negotiations, but Joe McCann, president of the Amalgamated Transit Union Local 1724, says they are willing to stay there as long as it takes, even if talks drag on all night.
About 600 employees of the door-to-door transit service for people unable to navigate the conventional transit system have been on strike since last Tuesday, pausing service for all but essential medical trips.
Hundreds of drivers rallied outside TransLink’s head office earlier this week, calling for the transportation provider to intervene in the dispute with Transdev, which was contracted to oversee HandyDART service.
Transdev said earlier this week that it will provide a reply to the union’s latest proposal on Thursday.
A statement from the company said it “strongly believes” that their employees deserve fair wages, and that a fair contract “must balance the needs of their employees, clients and taxpayers.”
This report by The Canadian Press was first published Sept. 12, 2024.
MONTREAL – Travel company Transat AT Inc. reported a loss in its latest quarter compared with a profit a year earlier as its revenue edged lower.
The parent company of Air Transat says it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31.
The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.
Revenue in what was the company’s third quarter totalled $736.2 million, down from $746.3 million in the same quarter last year.
On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.
Transat chief executive Annick Guérard says demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty.
This report by The Canadian Press was first published Sept. 12, 2024.
