With the recent rise in interest rates, many Canadians are now reconsidering their plans to become homeowners and are choosing to explore the rental market instead, according to the 2023 Real Estate Trends report issued by Kiiji.

According to first-quarter rental market trends, Vancouver maintained its position as the most expensive city for rent, while eight of the ten most expensive rental cities are located in Ontario.

The average rent in Vancouver is $2,585, according to the platform. At the same time, Toronto, the second most expensive city in Canada in terms of rent, has an average monthly rent of $2,302.

The report also mentioned that Quebec City, among the 22 cities analyzed in the report, with an average monthly rent of $1,108, is ranked as the city with the cheapest housing.

The report found that rental costs are influenced by factors beyond the city's location such as the availability of extra space, additional bedrooms, balconies, and inclusion of furnishings, all of which play an important role in determining rental prices.

For example, smaller cities in Ontario - such as Guelph, Hamilton, and Barrie - are among the five most expensive rental places in the country because these cities generally offer a bit more space and additional bedrooms.

Also, according to the report, renting a one-bedroom with a balcony in major cities like Vancouver, Toronto, Calgary, and Montreal will cost you nine percent ($190) more than a unit without a balcony.

However, when considering all property types in Canada, the average rent in the first quarter of 2023 was $1,840 per month. Detached homes demanded the highest average rent at $2,420 per month, followed by semi-detached houses with an average of $2,393 per month.

Furthermore, among rental listings in Canada, 31 percent are two-bedroom units and 26 percent are one-bedroom units. However, the prices of two-bedroom units are 22 percent higher than one-bedroom units ($1,743 compared to $1,425).

Houses and apartments were the most expensive types of properties in Canada in the first quarter with a monthly rent of $2,393 and $2,183 respectively.

The Kiiji report expects there may be further growth in rents throughout the year.

Here are the most expensive Canadian cities for rent according to Kiiji:

1. Vancouver, British Columbia - $2,585

2. Toronto, Ontario - $2,302

3. Guelph, Ontario - $2,139

4. Hamilton, Ontario - $2,134

5. Barrie, Ontario - $2,130

6. Kitchener, Ontario - $2,119

7. Ottawa, Ontario - $2,022

8. Kingston, Ontario - $2,013

9. Halifax, N.S. - $2,007

10. Peterborough, Ontario - $993