The increase in rental costs for an average one-bedroom outpaced a two-bedroom rental in Red Deer in July.
According to Rentals.ca and Bullpen Research & Consulting’s latest National Rent Report, month-over-month statistics showed a 4.7 per cent increase for a one-bedroom and a 1.2 per cent for a two-bedroom.
A year-over-year comparison was unavailable for a one-bedroom, but rent for a two-bedroom was up 13.8 per cent.
However rental costs in the city were nowhere near the highest in Canada. Cities in British Columbia and Ontario took the top ten spots for the highest average monthly rents in July out of 35 cities.
Red Deer came in 30th on the list for average monthly rent for a one-bedroom at $1,102, and came in 32nd for average monthly rent for a two-bedroom at $1,198.
Average rent for all Canadian property types was $1,934 in July, an increase of 10.4 per cent year over year.
The rent report said the July average rent in Canada was only $20 below the pre-pandemic peak of $1,954 in September 2019. Month over month, average rents rose 2.6 per cent over June.
“The 2.6 per cent monthly increase in average rents in Canada is the second highest monthly jump in three years, topped only by the 3.8 per cent rise in May 2022. Rents were boosted by rent growth of 20 per cent and higher in several major municipalities in Canada, and double-digit growth in a number of the most affordable rental markets, such as Red Deer and Saskatoon,” said Ben Myers, president of Bullpen Research, in a statement.
The report said workers returning to the office are boosting rents in the most expensive central markets in Canada.
Rising interest rates are also hitting potential homebuyers with a double whammy of higher mortgage rates, along with the worry of future price declines devaluing their investment. Higher interest rates are keeping would-be home sellers from listing their properties, which ultimately leads to higher demand in the rental market.
Immigration remains elevated, and the unemployment rate nationwide remains near historic lows, so despite some recession fears, rental market demand remains strong.
Calgary finished 21st on the list for average monthly rent in July for a one-bedroom at $1,583, and 24th for average monthly rent for a two-bedroom at $1,934.
Year over year, average monthly rent for a one-bedroom in Calgary was 27.1 per cent and up 19.2 per cent for a two-bedroom.
Lethbridge finished 31st with a one-bedroom at $1,089, and a two-bedroom at $1,236.
Year over year, average monthly rent for a one-bedroom in Lethbridge was up 9.8 per cent and up 12.5 per cent for a two-bedroom. Month over month, average rent was up 3.3 per cent for a one-bedroom and up 5.3 per cent for a two-bedroom.
Edmonton came in 32nd for a one-bedroom at $1,054, and 30th for a two-bedroom at $1,333.
Year over year, a one-bedroom in Edmonton was up 2.6 per cent, and up 7.4 per cent for a two-bedroom.
Lloydminster finished last on the list of 35 cities for a one-bedroom at $836, and a two-bedroom at $977.
Year over year, average monthly rent in July for a one-bedroom in Lloydminster was up 16 per cent, and up 17.1 per cent for a two-bedroom.