Rents in some of the major cities in Canada increased over the past year, with Halifax, Montreal, Calgary, and the Greater Toronto Area (GTA) reporting substantial gains, according to the latest report by the Canada Mortgage and Housing Corporation (CMHC).

The average rent for a two-bedroom apartment increased by 3.9%, clocking the fastest growth since 2001.

The GTA and Vancouver markets were the only ones amongst the Census Metropolitan Areas (CMAs) to register a rent growth above the national average.

“The major centres of Toronto and Vancouver continue to see high rent levels. We also see some relief on the upward pressure on rents from growing supply of purpose-built rental apartments,” the CMHC said.

The high rent levels in the two markets reflect their deteriorating homeownership affordability.

“Entry-level home prices continue to remain high, relative to local incomes in Vancouver. This results in many potential homebuyers facing financial barriers to entry into homeownership. Some potential homebuyers may choose to rent longer term, contributing to rental demand,” the CMHC said.

Rents in Major Cities Spike by Gerv Tacadena | Canadian Real Estate Wealth