Rents rise to new heights amid escalating growth
Net rental rates continued to escalate throughout 2022 and reached an average of $13.71 per sq. ft. in Q4, setting another new record for growth at 30.9% year-over-year.
Rents rose in every market across Canada with growth led by Montreal, the Waterloo Region and Toronto, which all saw annual increases of over 30% in 2022.
All markets, with the exception of Edmonton, set new historical highs for net asking rental rates in Q4 2022. The Vancouver market currently commands the highest rents in Canada, averaging $20.83 per sq. ft. in Q4 2022. Toronto and Montreal follows with average net asking rents of $17.17 per sq. ft. and $15.39 per sq. ft., respectively.
With a large influx of new supply expected to enter the market in 2023, further rental rate growth is expected due to the high associated construction costs of new builds in many markets.