Average rent for 2-bedroom apartment in Canada hits $989, up 2.7% in past year

The average monthly rent for a two-bedroom apartment in Canada last month was $989, a rise of 2.7 per cent in the past 12 months.

The Canada Mortgage and Housing Corporation said in itsannual report Tuesday that rents increased by twice the inflation rate this year, as booming demand for rental units pushed up prices, despite more of them being built.

Some of the highest rent increases were in British Columbia, where average rents in large urban centres such as Kelowna, Victoria and Vancouver increase by 8.6, 8.1 and 6.2 per cent, respectively.

Ontariorents also increased, mainly in and around the Toronto area.

Centres in Ontario withstrong rent increases included Belleville (5.9 per cent), Oshawa (5.2 per cent), Hamilton (5.1 per cent), Barrie (4.6 per cent) and Toronto (4.2 per cent).

Rents in B.C. and Ontario increased mainly because the vacancy rate declined in each of them, allowinglandlords to be choosier about tenants, and to charge more.

That's not the case in Canada's oil-producing provinces, however, where high vacancy rates continue to put downward pressure on rents.

InSaskatoon and Edmonton, the average rent on a two-bedroom apartment declined by1.3 per cent this year. InCalgary, average rents decreased by one per cent.

In dollar terms across the country,Vancouver is the most expensive rental market in Canada, with the average price for a two-bedroom going for $1,552. Toronto is next highest at $1,404and Calgary at $1,247.

Rents were lowest in Trois-Rivires ($594), Saguenay ($605) and Sherbrooke ($631), all in Quebec.