What’s included in Canadians’ rent?

Rental costs often cannot be compared without accounting for differences across data sources, regions and dwellings (e.g., dwelling type, size and condition). Similarly, a failure to consider differences in terms of non-financial inclusions such as utilities, parking, appliances or air conditioning can undermine the validity of cost comparisons. Using the 2021 Canadian Housing Survey, this study explores the prevalence of such rental inclusions and their potential impact on rental costs. Results suggest wide-ranging variability by inclusion type, geography and dwelling characteristics. For respondents paying rent, common inclusions are water and other municipal services (71%); appliances (23% in Quebec, but 70% or more in other provinces); parking (53%); electricity (31%); and oil, gas and other fuels (26%). Rental inclusions are a valuable source of information to make rents comparable, such as in provincial cost comparisons. For example, the inclusion of air conditioning and appliances explains around 8% and 7%, respectively, of the difference in rental costs between Ontario and Quebec, while the inclusion of appliances accounts for around 11% of the difference in average rents between British Columbia and Quebec. Findings suggest future research on housing affordability and rental market pricing would benefit from factoring in rental inclusions to enhance the accuracy and validity of cost comparisons.