According to the latest National Rent Report from Rentals.ca and Urbanation, average asking rents for all residential property types in Canada declined to $2,139 in November, marking a 15-month low.
Rents fell 1.6 per cent in comparison to November of last year, with average asking rents decreasing 0.6 per cent month-over-month, continuing the trend seen back in October, when rents fell 1.9 per cent month-over-month.
The report noted that much of the year-over-year decrease is due to rents dropping in the second half of 2024, with current average asking rents down 2.8 per cent since July.
Despite the recent decline, rents remain elevated in comparison to historical levels, up 6.7 per cent from two years ago and 18.8 per cent from three years ago. Over the past five years, rents have grown at an average annual rate of 3.4 per cent, in line with long-term trends.
“Overall, the recent decline in rents has been very mild and is allowing affordability to improve following a rapid escalation in rents over the past few years. Declines so far are mainly focused within the secondary market for condos and houses, mostly in B.C. and Ontario, while purpose-built rents are stable,” said Shaun Hildebrand, president of Urbanation.
Average asking rents for purpose-built and condominium apartments decreased by 0.2 per cent annually to $2,120 in November, according to the report. One-bedroom rents declined 1.2 per cent year-over-year to $1,921, while two-bedroom rents fell by 1.0 per cent to $2,302. Rents for studios and three-bedroom apartments continued to rise, increasing 5.0 per cent and 5.1 per cent, respectively.
In Ontario, the rental market experienced the sharpest declines, with apartment rents dropping 6.4 per cent annually to $2,351, led by a 7.6 per cent decrease in two-bedroom rents, according to the report. British Columbia saw more moderate declines, with apartment rents falling 2.3 per cent year-over-year to $2,524. Meanwhile, rents in Quebec edged down by 0.4 per cent to $1,969.
The report noted that while the decline in national average rents was driven by decreases in the most populous provinces, there have been regional increases in certain areas.
In the prairies provinces, average rents in Alberta rose by 3.7 per cent, Saskatchewan by 12.1 per cent, and Manitoba by 7.9 per cent. In the Maritimes, New Brunswick saw a 5.1 per cent increase in average asking rent, and Nova Scotia rents rose by 4.4 per cent. Rent in Newfoundland and Labrador was close to flat over the past year, declining by 0.4 per cent.
Canada’s largest rental markets saw significant rent decreases in November. Toronto rents decreased 9.4 per cent year-over-year to $2,640, a 28-month low. Vancouver rents dropped 8.9 per cent to $2,888, marking a 30-month low. Calgary, Ottawa, and Montreal also recorded declines of 5.8 per cent, 3.0 per cent, and 2.3 per cent, respectively.
Listings for shared accommodations increased 52 per cent year-over-year in November. The national average asking rent for shared units rose by 3.9 per cent to $997, with growth led by British Columbia and Ontario.
