Rental prices up in city as interprovincial migration helps raise rates, says report
By Steffanie Costigan - Lethbridge Herald Local Journalism Initiative Reporter on April 17, 2024.
Canadian rent growth shows a shifting market dynamic, according to website Rentals.ca and the Urbanation Rent Report.Lethbridge ranked 33rd out of 35 cities in March with the average one-bedroom rent being $1,282, which was a 2.4 per cent increase month-over-month and 5.9 per cent increase year-over-year, said Giacomo Ladas, communications manager of Rentals.ca, in a telephone interview Tuesday.
The report showed the Lethbridge average for rent of a two-bedroom unit was $1,486, increasing 1.5 per cent month-over-month and 7.9 per cent increase year-over-year. Other Alberta communities such as Edmonton, Airdrie, and Calgary also saw year-over-year increases.
“We’re seeing a decrease in certain areas of the country, like let’s say in British Columbia, in Ontario, which in one aspect, it’s a good thing, because renters are looking to get into the market. Prices are coming down, that’s always a good thing for the rental side of things, said Ladas.
“But it doesn’t really tell the full story because what seems to really be happening is that these primary markets such as Vancouver, or Toronto, because of the prices of rent” a lot of Canadians have no other option but to seek more affordable options across the country, he added.
Ladas said interprovincial migration is increasing rates in other provinces such as Alberta and Quebec.
“We’re seeing really high interprovincial migration. So basically, we’re seeing tens of thousands of people being in Ontario (and) in British Columbia. They’re going to places like Alberta, or going to Quebec or to the Maritimes. And what that does is increases the rate in those provinces.
“So even though nationally, we are seeing rent decrease a little bit month over month, it’s really holding strong because there’s been a slowdown in rental demand in Canada’s most expensive markets. However, areas like Alberta are still seeing larger (increase),” he said.
“There’s been very high population growth,record high inflation and a low production of new housing. And that creates a burden on the rental housing market, so as a result, more people are just competing for the rental,” said Ladas.
Ladas said although Alberta is seeing an increase in demand, he expressed confidence in the province being capable of keeping up with it.
“Typically, in Alberta, they are much faster in producing new housing. They’re even really good job of speeding up new builds, as well as office to residential conversions.”
Nationally, the asking rents for all property types in Canada increased by 8.8 per cent in march, reaching $2,181. This is down from the 10.5 per cent increase recorded in February.
Here are stats for other Alberta cities:
• Calgary ranked 23rd of 35 cities in March with the average one-bedroom rent being $1,707, a -0.3 per cent drop month-over-month, and 8.5 per cent increase year-over-year, while the average two bedroom rent was $2,101, a 1.3% increase month-over-month, and a 8.8 increase year-over-year.
• Airdrie was 27th. The average one- bedroom rent was $1,556, a 3.7 per cent increase month-over-month, and 12.2 per cent increase year-over-year, while the average two-bedroom rent was $2,042, a 4.5 per cent increase month-over-month, and a 12.6 per cent increase year-over-year.
• Edmonton was 31st in March. The average one bedroom rent in the provincial capital was $1,339, which was a 2.1 per cent increase month-over-month, and 18.5 per cent increase year-over-year, while the average two-bedroom rent was $1,654,a 0.9% increase month-over-month, and a 14.4% increase year-over-year. 2
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