Buoyed by significant population growth, New Brunswick's rental market defied Canada's 1.6% decline in November 2024.
Rent Up, Space Down
The latest data from Rentals.ca and Urbanation reveals some fascinating trends in the Canadian rental market, with New Brunswick exhibiting distinct characteristics. As of November 2024, the average asking rent for all types of residential properties in Canada has dipped to a 15-month low of $2,139, reflecting a 1.6% year-over-year decline. This follows a 1.2% decrease observed in the previous month.
In New Brunswick, while the rental market has generally followed the national downward trend, it has shown some resilience in specific areas, with an average rent of $2,147 for apartments and condos. This is an 8% increase over the previous year. The rental market in New Brunswick has been heavily impacted by significant population growth. From 2021 to 2023, the province welcomed nearly 44,000 new residents, which has strained both the rental and real estate markets, leading to a critical shortage of affordable housing options.
The province's combination of population growth, limited housing supply, and economic factors continues to drive rental demand and prices upward, presenting ongoing challenges for both tenants and policymakers. As of 2024 and going forward, most rent increases above 4% will be phased in over multiple years.
National Overview: A Deep Dive into Canada’s Rental Trends
Across Canada, the rental market has experienced a varied performance:
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Top Markets: Vancouver and Toronto saw significant decreases in rents. Vancouver’s one-bedroom units are now at $2,534, a sharp 11.6% decrease year-over-year, while Toronto’s one-bedroom units dipped to $2,374, an 8.5% decrease.
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Provincial Insights: Saskatchewan led the country with the highest annual rent increase of 16.1% for apartments. Alberta and Quebec showed more stable performances, with moderate increases and decreases respectively.
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Rental Type Analysis: Condominium apartments nationally have seen a decline by 4.0% over the past year, settling at an average rent of $2,239. In contrast, purpose-built apartment rents showed a slight annual increase of 0.7%, with a notable 5.8% rise in rents for studios.
The Dynamics of Shared Accommodations and Beyond
The report also sheds light on the growing trend towards shared accommodations, where the national average asking rent has risen by 3.9% to $997. This segment’s growth is most notable in British Columbia, where shared accommodations have seen a 4.7% increase, indicating a shifting dynamic in housing needs among Canadians.
As the rental landscape continues to evolve, both challenges and opportunities arise. What's your rental experience? How does it compare to the trends we've discussed? Leave a comment below and join the conversation.
