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Canadian rental market sees 1.2% decline, first drop since COVID, as per Rentals.ca and Urbanation report

Toronto – November 7, 2024 – Average asking rents for all residential property types in Canada fell by 1.2% year-over-year in October, marking the first annual rent decline since July 2021, according to the latest National Rent Report from Rentals.ca and Urbanation. Average rents across the country now stand at $2,152 per month, equal to a $49 reduction per month since July.

The decline in rent growth is mainly concentrated in Canada’s major urban centres, particularly Ontario and British Columbia, with cities like Toronto, Vancouver, Calgary, and Montreal seeing decreases. Smaller, more affordable markets continued to experience rent growth in October, emphasizing a shift in demand toward less costly areas.

It is a rare occurrence for rents to decline at the national level. This is happening as the key drivers of rent growth in recent years — a strengthening economy, quickly rising population, and worsening homeownership affordability — are beginning to reverse,” says Shaun Hildebrand, President of Urbanation. “As a result, we can likely expect this trend for rents to continue in the near-term, particularly as apartment completions remain at record highs.”

The largest year-over-year apartment rent decreases were found in British Columbia and Ontario, with B.C. experiencing a 3.4% decline to an average rent of $2,549, and Ontario down 5.7% to $2,350. Quebec’s average rent dipped slightly by 0.5%, reaching $1,966. Rent increases continued in other provinces, with Saskatchewan and Nova Scotia seeing the highest growth at 17.1% and 9.6%, respectively.

In Canada’s largest rental markets, Toronto posted a significant 9.2% annual decrease, bringing the average rent to $2,642. Vancouver followed closely with an 8.4% decline, averaging $2,945. Calgary and Montreal also reported declines, with rents down by 4.7% and 2.9% year-over-year, respectively. Edmonton recorded an 8.4% increase, making it Canada’s most affordable large city at $1,584.

In the purpose-built and condominium apartment sector, average asking rents rose slightly by 0.5% year-over-year to $2,122 in October. Purpose-built apartment rents showed a 1.7% annual increase, reaching an average of $2,100, while condominium apartment rents declined by 3.8% to an average of $2,265. Studio apartments in purpose-built buildings saw the highest rent increases, up 7.4% to $1,622, whereas condo studios declined by 6.9%, averaging $1,874.

Shared accommodations continued their increase in popularity, with listings rising by 12% month-over-month and 58% year-over-year. Average rents for shared accommodation increased by 5.3% in Quebec, 3.9% in Alberta, 2.5% in B.C., and 1.2% in Ontario.

The National Rent Report charts and analyzes monthly, quarterly and annual rates and trends in the rental market on national, provincial, and municipal levels across all listings on the Rentals.ca Network for Canada. The data from the digital rental platform Rentfaster.ca is incorporated into this report.

Rentals.ca Network data is analyzed and the report is written by Urbanation, a Toronto-based real estate research firm providing in-depth market analysis and consulting services since 1981.

The data includes single-detached homes, semi-detached homes, townhouses, condominium apartments, rental apartments and basement apartments (outlier listings are removed, as are single-room rentals.)

Giacomo Ladas, giacomo@rentals.ca

Shaun Hildebrand, shaun@urbanation.ca

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