Top headlines: Average asking rent hits record $2,178 in December

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Today’s headlines

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Top story

Average asking rent hits record $2,178 in December: report

A new report says the average asking price in December for a rental unit in Canada was a record $2,178 per month, relatively flat from the previous month but marked an 8.6 per cent jump year-over-year.

The data released Monday by Rentals.ca and Urbanation, which analyzes monthly listings from the former’s network, shows the average monthly cost of a one-bedroom unit in December was $1,932, up 12.7 per cent from the same month in 2022. The average asking price for a two-bedroom was $2,301, up 9.8 per cent annually.

The report says asking rents in Canada over the past two years have increased overall by a total of 22 per cent, or an average of $390 per month.

Traditional purpose-built rental apartments posted the fastest price growth in 2023 with a 12.8 per cent increase, as rents averaged $2,076. Condominium rentals, with an average rent of $2,340, and home rentals, at $2,354, had slower annual growth of 6.9 per cent and 5.9 per cent, respectively.

Alberta had the fastest-growing rents among all provinces for purpose-built and condominium apartments in 2023, with a 15.6 per cent annual increase in December to reach an average of $1,691, while B.C. remained the most expensive province for apartment rents with an average asking rent of $2,500, despite a 1.4 per cent annual decrease.

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The report says the rental market in Canada will remain undersupplied in 2024, but there should be more balance, with rent growth expected to be closer to its five-year average of approximately five per cent.

The Canadian Press

4:45 p.m.

Market close: TSX creeps higher, U.S. markets closed

Gains in telecommunication and energy stocks helped Canada’s main stock index creep higher to start the week.

The S&P/TSX composite index closed up 71.66 points at 21,061.88.

U.S. stock markets were closed for Martin Luther King Jr. Day.

The Canadian dollar traded for 74.43 cents U.S. compared with 74.70 cents U.S. on Friday.

The February crude oil contract was up 66 cents at US$72.68 per barrel and the February natural gas contract was up 22 cents at US$3.31 per mmBTU.

The February gold contract was up US$32.40 at US$2,051.60 an ounce and the March copper contract was down four cents at US$3.74 a pound.

The Canadian Press

4:07 p.m.

Mastermind terminates 272 employees as sale to Unity closes

Mastermind GP Inc. has terminated about 272 employees as the toy retailer is turned over to new ownership.

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In filings made with an Ontario court, lawyers for the chain say termination notices have been provided to 232 employees who new owner Unity Acquisitions Inc. will not retain.

The filings say another 40 temporary employees will not be kept.

Some 619 Mastermind employees have been given new employment offers.

The details around Mastermind’s workforce come as the beleaguered company announced the closure of its sale to Unity, which is owned by retail leaders David Lui, Joe Mimran, and Frank Rocchetti.

Before Mastermind filed for creditor protection in November and later liquidated 18 stores, it had about 800 employees.

The Canadian Press

3:54 p.m.

Kristian Aquilina named new president and managing director of GM Canada

General Motors Co. has named Kristian Aquilina as GM Canada’s new president and managing director.

The move is a promotion for Aquilina, who was GM Canada’ vice-president for vehicle sales, service and marketing.

He replaces Marissa West, who became president of GM North America earlier this month.

GM says Aquilina takes the job as the industry prepares for an all-electric future and the company works to build on its recent investments in Canada.

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Canadian autoworkers ratified a new three-year contract agreement with General Motors last year after a brief strike.

The deal included significant increases in wages, benefits and job security.

The Canadian Press

12:08 p.m.

Midday markets: TSX creeps higher in late-morning trading, U.S. markets closed

Gains in the telecommunication and energy stocks helped Canada’s main stock index creep higher in late-morning trading to start the week.

The S&P/TSX composite index was up 7.96 points at 20,998.18.

U.S. stock markets are closed for Martin Luther King Jr. Day.

The Canadian dollar traded for 74.39 cents U.S. compared with 74.70 cents U.S. on Friday.

The February crude oil contract was down 43 cents at US$72.25 per barrel and the February natural gas contract was down 23 cents at US$3.08 per mmBTU.

The February gold contract was up US$6.30 at US$2,057.90 an ounce and the March copper contract was up four cents at US$3.78 a pound.

The Canadian Press

12:01 p.m.

Tremors from Red Sea conflict start to shake Canada, with dozens of ships delayed

Canadian shippers are starting to feel the strain of attacks on cargo vessels in the Red Sea, as container rates rise and boats are late to arrive.

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Port data shows that two-thirds of the 43 ships slated to berth at the Port of Halifax in the second half of this month are now expected to arrive at least a day behind schedule, with some running weeks late.

According to industry research firm Drewry, the average price of shipping containers has doubled since mid-December, when Houthi militants in Yemen stepped up attacks on commercial boats to protest against Israel’s military campaign in the Gaza Strip.

The widening conflict has prompted all major container carriers to steer clear of the route that passes through the Suez Canal, opting instead for a path around Africa that can add one to two weeks to transit times and greater fuel, crew and insurance costs.

Shipping Federation of Canada chief executive Chris Hall says the delays have sent importers scrambling, with sluggish stock still en route to Canadian shores and shelves.

But shipments to the West Coast remain largely unaffected so far, while the Global Shippers Forum says excess capacity in the sector means prices will likely settle far below pandemic highs.

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Read the full story.

The Canadian Press

11 a.m.

Canadians in several provinces to receive first carbon price rebates today

Canadians living in provinces where the federal carbon price is collected are expected to receive their first Climate Action Incentive rebate of the year today.

The federal government says people living in provinces including Alberta, Manitoba, New Brunswick, Ontario, and Saskatchewan will receive the rebate through direct bank deposit or by cheque if they have filed their income tax and benefit returns.

Ottawa has said the payments are calculated based on the number of adults and children in the household.

People living in small and rural communities are to receive an extra 10 per cent supplement beyond the base rebate amount.

Minister of Environment and Climate Change Steven Guilbeault says in a news release that the federal pollution pricing system is a key part of Ottawa’s plan to fight climate change.

The Liberals first pushed the incentive to pollute less as an electoral promise in 2008 but lost that election to the Conservatives, and the pricing system was later revived in the Liberal platform in both 2019 and 2021.

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The Canadian Press

10:20 a.m.

Capital Power, Ontario Power Generation could build small nuclear reactors in Alberta

Capital Power Corp. and Ontario Power Generation have signed a deal to assess the development of small modular nuclear reactors in Alberta.

The companies say they will complete the feasibility assessment within two years.

Capital Power chief executive Avik Dey says the deployment of SMR technology will provide an important source of power in Alberta in the future.

OPG is developing an SMR project at its Darlington site in Ontario.

The construction of the first of four SMRs will be completed by the end of 2028 and is expected to be online by the end of 2029.

Edmonton-based Capital Power has a total of about 7,700 megawatts of power generation capacity at 30 facilities across North America.

The Canadian Press

7:30 a.m.

Stock markets before the opening bell

United States markets are closed for Martin Luther King Jr. Day. Equity index futures are flat. Treasury markets are also closed.

European stocks fell as traders weighed the outlook for monetary policy ahead of a raft of speeches by policymakers at the World Economic Forum in Davos this week.

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The Stoxx Europe 600 index slipped 0.2 per cent, extending a lacklustre start to the year after a 13 per cent rise in 2023. Basic resources and carmakers led the decline after Germany’s economy dodged a recession, though the latest data showed it contracted for the first time since the pandemic last year. Germany’s 10-year yield rose about three basis points as bonds across the euro region fell.

In Canada, the S&P/TSX composite index closed up 71.82 points at 20,990.22 on Friday.

Bloomberg

6:36 a.m.

Canada weighs cap on foreign students amid housing crunch

Canada will consider measures to cap the number of international students in the coming months as the country wrestles with a housing shortage.

“That volume is disconcerting,” Immigration Minister Marc Miller said in a pre-taped interview with CTV News on Jan. 14, referring to the rise of foreign student visas in Canada. “It’s really a system that has gotten out of control.”

Miller said the federal government will have “conversations” with the provinces in the first half of this year “to make sure that the provinces that have not been doing their jobs actually rein in those numbers on a pure volume basis.”

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Prime Minister Justin Trudeau’s government has faced criticism for welcoming more immigrants — both permanent and temporary — during an affordability crisis that has caused the cost of housing to spike and curtailed supply.

The number of foreign students in Canada has nearly tripled in the past decade, reaching more than 800,000 last year. International students pay about five times more tuition as Canadians.

Miller’s comments expand on earlier plans to consider limiting foreign-student visas.

Jacob Lorinc, Bloomberg

What to watch today

The Bank of Canada will release its business outlook survey and survey of consumers for the fourth quarter at 10:30 a.m. ET.

Data releases today include manufacturing sales and orders for November and wholesale trade. The Canadian Real Estate Association will also release the MLS Home Price Index and existing home sales for December.

The World Economic Forum begins in Davos, Switzerland today.

Need a refresher on Friday’s top headlines? Get caught up here.

Additional reporting by The Canadian Press, Associated Press and Bloomberg

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