Canadian multi-family real estate market performance remains exceptional as demand exceeds supply, says Yardi in a new report.

And, conditions are likely to continue for the foreseeable future, says Yardi in its quarterly Canadian multi-family market report.

Rent growth continued to escalate in the third quarter as the average in-place rent rose $26 to an all-time high of $1,457 for a one-bedroom suite. (Yardi defines in-place rent growth as monthly rent per unit for all leases, including new lease rents, renewal lease rents and existing leases.)

Year-over-year rent growth increased for the seventh straight quarter, to 6.1%. Nationally, Alberta led provinces in rent growth as it rose 3.1% in the third quarter and 9% year-over-year.

Among large markets, Calgary led with 3.7% growth in the third quarter and 12.6% year-over-year, while Toronto and Edmonton tied for second (6.2%) and Hamilton (6%) ranked third.

The federal government’s decision to scrap the G.S.T. on purpose-built rental apartment projects has spurred the development of thousands of multi-family units, said Yardi.