The latest National Rent Report by Rentals.ca and Urbanation revealed that average asking rents for all residential property types in Canada increased by 3.3 per cent year-over-year in August, reaching an average of $2,187 per month and marking the slowest annual rate of rent growth in almost three years.
On a month-over-month basis, average asking rents decreased by 0.1 per cent, extending the trend of moderation which was seen since May.
The report noted that rents for purpose-built and condominium rental apartments increased by 4.7 per cent annually, averaging $2,142 in August.
In terms of purpose-built apartment rents, they rose 6.2 per cent to an average of $2,118, while condominium apartment rents increased by only 0.1 per cent, averaging $2,308. Studio condominium rents decreased for the sixth consecutive month, down 3.3 per cent annually to $1,825, while purpose-built studio rents increased by 10.7 per cent to $1,784.
“Rent increases in Canada finally returned to their longer-term average after nearly three years of excessive growth,” said Shaun Hildebrand, president of Urbanation. “This was achieved through a combination of more supply being built, as well as a rollback in demand from population-related changes in government policies.”
Despite experiencing annual declines, both B.C. and Ontario remained the provinces with the highest rents. In B.C., average apartment rents dropped 5.2 per cent annually to $2,536, while Ontario saw a 4.3 per cent decrease to $2,390. Saskatchewan led rent growth with a 21.4 per cent annual increase, which brought average apartment rents to $1,338.
Out of Canada’s six largest markets, the report noted that Edmonton was the only city to record annual rent growth, with apartment rents rising 9.2 per cent to an average of $1,579.
The City of Toronto saw a 6.9 per cent drop in apartment rents, which brought the average down to $2,697.
Although apartment rents began to trend upward again, Vancouver continued its nine-month streak of annual declines, reaching $3,116.
Calgary, Ottawa, and Montreal experienced marginal declines, with Calgary rents dipping 1.1 per cent annually to $2,046, Ottawa rents decreasing to 0.1 per cent to $2,224, and Montreal rents decreasing 0.6 per cent to $1,988.
In terms of shared accommodation listings, they recorded an 8.0 per cent annual increase in asking rent across four provinces, and reached an average of $1,011 in August, the highest on record.
Despite this, the report noted that roommate rents in Vancouver and Toronto saw declines, dropping to $1,481 and $1,234, respectively.
Other major markets experienced increases with Calgary reaching $928, Ottawa at $944, and Montreal at $950.
