Canada Real Estate Market: Rents Up 2.1% in September

Discover the latest report on Canada's real estate market, revealing a 2.1% rise in rents for September. Stay informed on housing trends.

A recent analysis reveals that the growth trajectory of average asking rents across Canada experienced a notable deceleration last month, reaching its most languid pace since October 2021, with a year-over-year increase of merely 2.1 percent. The comprehensive report, compiled by Rentals.ca in conjunction with Urbanation, disclosed that the average asking rent for September stood at $2,193, thereby marking the fifth consecutive month in which the annual growth rate has diminished from the robust nine percent surge recorded in May.

This slowdown in rental growth can be largely attributed to a significant decline in foreign student enrollments, which have plummeted by approximately fifty percent from their historical zenith, with the repercussions being most acutely felt in British Columbia and Ontario. In stark contrast, smaller, more economically accessible markets are witnessing a vigorous upward pressure on rents, as demand increasingly migrates towards less costly regions of the country.

Ontario and British Columbia have emerged as the provinces with the most pronounced annual rent declines. Specifically, average asking rents for purpose-built and condominium apartments in Ontario decreased by 4.3 percent, settling at $2,380, while British Columbia experienced a 3.2 percent drop, bringing the average to $2,570. Conversely, Saskatchewan has distinguished itself as the fastest-growing province in terms of asking prices, with rents soaring by an astonishing 23.5 percent to an average of $1,378.

Examining the urban landscape, apartment rents have diminished in major cities such as Vancouver, Toronto, Calgary, and Montreal, while Ottawa has recorded a modest uptick. Vancouver's rental market, in particular, has seen a dramatic 9.5 percent decline, reducing average rents to $3,023 in September, thus marking the tenth consecutive month of year-over-year decreases. Toronto, recognized as Canada’s second most expensive rental market, also experienced a downturn, with average rents falling by 8.1 percent to $2,668.

Interestingly, the report identified Lloydminster as one of Canada’s most affordable markets, boasting average apartment rents of $1,178—an increase of 27.5 percent from the previous year. Other affordable markets exhibiting significant growth include Saskatoon, where average prices surged by 24.8 percent to $1,428, and Quebec City, which saw rents leap by 24 percent to $1,758.

According to the findings, the average asking rent for a one-bedroom unit in Canada was $1,916 in September, reflecting a 2.1 percent increase from the prior year. The average asking price for a two-bedroom unit was recorded at $2,279, up 2.6 percent. Overall, asking rents for purpose-built rental apartments in September rose by 5.4 percent compared to the previous year, achieving an average of $2,138. In contrast, condominium apartment rents, averaging $2,296, experienced a slight decline of 1.7 percent.