Canada Real Estate Market: Rents Drop for First Time in over 3 years

For the first time in over three years, average asking rents in Canada fell 1.2% in October, reaching $2,152, according to Rentals.ca.

In a notable shift within the Canadian rental landscape, average asking rents experienced a year-over-year decline for the first time in over three years, as reported on Thursday. The comprehensive analysis conducted by Rentals.ca in conjunction with Urbanation revealed that the average asking rent across Canada settled at $2,152 in October, reflecting a modest decrease of 1.2 percent compared to the same month in 2023. This marks the inaugural national downturn since July 2021.

The contraction in rental prices is predominantly observed in Canada’s major urban centers, with metropolitan hubs such as Toronto, Vancouver, Calgary, and Montreal witnessing significant rent reductions. British Columbia and Ontario emerged as the provinces with the most pronounced annual rent decreases, with British Columbia experiencing a 3.4 percent decline in average asking rents for apartments, bringing the figure to $2,549, while Ontario recorded a more substantial drop of 5.7 percent, resulting in an average of $2,350.

Conversely, Saskatchewan has distinguished itself as the fastest-growing province in terms of asking prices, with rents soaring by 17.1 percent, following an impressive 23.5 percent annual growth in September. Delving into city-specific data, Toronto reported the steepest annual decline in asking rents for apartments in October, plummeting by 9.2 percent to an average of $2,642. Vancouver followed suit with an 8.4 percent year-over-year decrease, settling at an average of $2,945, while Calgary's apartment rents fell by 4.7 percent to $1,995. In Montreal, average rents dipped by 2.9 percent, reaching $1,987. Notably, Ottawa's apartment rents remained relatively stable, with a slight annual increase of 0.4 percent, culminating in an average of $2,207.

In a surprising twist, Edmonton emerged as the leader in rent growth among Canada’s largest markets, with apartment rents escalating by 8.4 percent annually to an average of $1,584. According to the report, the average asking rent for a one-bedroom unit in Canada stood at $1,923 in October, reflecting a slight decrease of 0.8 percent from the previous year. Meanwhile, the average asking price for a two-bedroom unit was recorded at $2,308, down by 0.2 percent. Overall, the asking rents for purpose-built rental apartments in October exhibited a modest increase of 1.7 percent compared to the previous year, culminating in an average of $2,100.