Six Alberta cities are on the list of 34 Canadian centres with the most expensive average monthly rents in Canada, according to the June national rent report produced by Rentals.ca and Bullpen Research & Consulting.
Calgary placed 22nd on the list with average monthly rent for a two-bedroom home at $1,470 and 19th for average monthly rent for a one-bedroom at $1,261.
Of the six Alberta cities on the list, Calgary had the most expensive rent for a two-bedroom and was second behind Fort McMurray ($1,286) for a one-bedroom. The other four Alberta cities listed – Edmonton, Grand Prairie, Red Deer, and Spruce Grove – had less expensive rents and filled out the bottom half of the list.
Following two months of decline, the average monthly rental rate in Canada increased four per cent in May.
Rents and demand for rental housing should continue to increase as the national unemployment rate is still declining and the mortgage stress test remains an obstacle for first-time home buyers.
Toronto continues to lead the list for the average monthly rent for a one-bedroom home at $2,231 and took over the top spot from Vancouver for average monthly rent for a two-bedroom at $2,735.
Quebec City has the lowest average monthly rent with a one-bedroom going for $837 and a two-bedroom for $1,006.
Average monthly rental rates for purpose-built apartments in Alberta, Saskatchewan, Manitoba or Quebec are about $600 less than rents for tenants in Ontario.
“Rental rates continue to increase in all major markets outside the Prairie provinces,” said Ben Myers, president of Bullpen Research & Consulting. “Solid job growth and immigration continue to fuel housing demand, while the Office of the Superintendent of Financial Institutions remains firm on its continued support for the mortgage stress test, which has prevented many prospective homebuyers from affording an entry-level home.”
Here are the overall rankings for Alberta cities, with their average monthly rent for one-bedroom places and percentage change from the previous month:
- Calgary – 22, $1,261, -3.8 per cent
- Fort McMurray – 25, $1,286, -3.3 per cent
- Edmonton – 26, $1,093, -0.6 per cent
- Grande Prairie – 29, $1,052, -0.2 per cent
- Red Deer – 32, $1,079, +7.7 per cent
- Spruce Grove – 33, $1,071, -2.1 per cent
Here are the overall rankings for Alberta cities, with their average monthly rent for two-bedroom places and percentage change from the previous month:
- Calgary – 22, $1,470, +2.0 per cent
- Fort McMurray – 25, $1,411, -4.5 per cent
- Edmonton – 26, $1,319, -1.1 per cent
- Grande Prairie – 29, $1,262, +0.9 per cent
- Red Deer – 32, $1,181, +2.3 per cent
- Spruce Grove – 33, $1.175, +0.9 per cent
Mario Toneguzzi is a Troy Media business reporter based in Calgary.