While Canada saw a record increase in purpose-built rental supply in 2024, affordability remains a concern as most of the new units are priced beyond the reach of average renters.
Canada added record rental supply in 2024, but most units were too pricey for the average renter. The Canada Mortgage and Housing Corp. says the pace of rent growth cooled significantly this year as Canada added its largest share of purpose-built rental supply in over three decades. Despite the slowdown in rent growth , the housing agency said affordability remained 'strained.
' It noted the increase in rental stock was driven by higher-priced units being completed, many of which were too expensive for the average renter. The federal housing agency said in a report on Tuesday that the vacancy rate for purpose-built rental apartments sat at 2.2 per cent in October, when it conducted the annual survey. That was up from a record low of 1.5 per cent last year. The average rent for a two-bedroom purpose-built apartment, which the CMHC uses as its representative sample, grew 5.4 per cent to $1,447, compared to an eight per cent increase in 2023. The figures represent actual amounts tenants pay for their units, meaning average prices often appear lower than those listed in other reports that measure average asking rents set by landlords. For instance, the average asking rent for two-bedroom purpose-built apartments last month was $2,294, according to separate research from Rentals.ca and Urbanation.The CMHC said rents increased by 23.5 per cent when units turned over, which was close to 2023 rates
Rental Supply Affordability Rent Growth Vacancy Rate Housing Market
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