Rents in Canada Grow at Record Pace as Housing Shortage Stings

Surging demand for rentals pushed the vacancy rate to a 21-year low last year.

Condos in Montreal, Quebec.Photographer: Christinne Muschi/Bloomberg
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The cost to rent an apartment grew at a record pace in Canada last year as immigration surged, ramping up affordability pressures in an already housing-constrained economy.

Average rent for a two-bedroom apartment increased 5.6% in 2022, according to a report released Thursday by the Canada Mortgage and Housing Corporation. Strong demand also pushed the vacancy rate down to 1.9%, the lowest in 21 years, CMHC said.