Red Deer rents are on the rise, but this city is still considered among the most affordable for renters in Canada.
The latest National Rental Report shows that average rents have surpassed $2,000 in Canada with no signs of slowing down. The cost of renting accommodations in this country rose by 12.4 per cent over the last year to an average rent of $2,024.
Red Deer was number 33 on the list of 35 cities for average monthly rent in November. In Red Deer, the average rent was $1,029 for a one-bedroom unit, and $1,228 for a two-bedroom suite.
Year over year, average monthly rent in November for a one-bedroom in Red Deer was up 13.8 per cent and up 12.4 per cent for a two-bedroom.
Calgary and Edmonton respectively finished 25th and 30th on the list. Lethbridge finished 27th, while Grand Prairie was 34th, and Lloydminster was last on the list of 35 cities.
Vancouver once again topped the list with an average monthly rent of $2,633 for a one-bedroom place and $3,590 for a two-bedroom, while Toronto was No. 2.
As large cities go, Montreal was one of the cheapest for renters at No. 23 on the list.
“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 Inc., a Toronto-based real-estate consulting firm.
“With the most expensive cities experiencing very low supply and the fastest rates of rent increase, regions with high population growth are seeing demand shift into more affordable areas.”
Among major markets in Canada with populations over 1 million, average rents for purpose-built and condominium apartments increased fastest in November in the most expensive cities. Vancouver and Toronto rents were up 24.3 per cent to $3,104 and 23.7 per cent to $2,864, respectively.
Calgary came in third among Canada’s largest cities, posting annual growth of 21.9 per cent to $1,793 for for purpose-built and condominium apartments in November.
Edmonton average rent rose 9.2 per cent year over year to $1,286 for condominium apartments in November.
Montreal – Canada’s largest rental market – had the slowest annual rent increase among major metros at 7.6 per cent to an average of $1,817.