Average asking rents declined nationally on a year-over-year basis for the first time in more than three years in October, said a report out Thursday.
The report from Rentals.ca and Urbanation found average asking rents across Canada sat at $2,152 in October, down 1.2 per cent from the same month in 2023 — the first national decrease since July 2021.
The decline is mainly concentrated in Canada’s major urban centres, with cities like Toronto, Vancouver, Calgary, and Montreal seeing rent decreases.
Urbanation president Shaun Hildebrand said it is rare for rents to decline year-over-year 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,” said Hildebrand.
“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.”
B.C. and Ontario recorded the most significant annual rent decreases among the provinces, with the former seeing average asking rents for apartments down 3.4 per cent to $2,549 and the latter recording a 5.7 per cent drop to $2,350.
Rents rose 17.1 per cent in Saskatchewan, which remained the fastest-growing province in the country in terms of asking price, after seeing 23.5 per cent annual growth in September.
By city, Toronto recorded the largest annual decline in asking rents for apartments in October, at 9.2 per cent, to reach an average of $2,642. Vancouver saw an 8.4 per cent year-over-year rent decline to an average of $2,945, while Calgary apartment rents fell 4.7 per cent to $1,995.
In Montreal, average rents were down 2.9 per cent at $1,987. Ottawa apartment rents held steady with a 0.4 per cent annual increase to reach $2,207.
However, Edmonton led rent growth in Canada’s largest markets as apartment rents rose 8.4 per cent annually to an average of $1,584.
Based on the report, the average asking rent for a one-bedroom unit in Canada was $1,923 in October, down 0.8 per cent from a year ago. The average asking price for a two-bedroom unit was $2,308, down 0.2 per cent.
Overall, asking rents for purpose-built rental apartments in October rose 1.7 per cent compared with a year earlier to reach an average of $2,100.
Meanwhile, condominium apartment rents, which averaged $2,265, were down 3.8 per cent.
This report by The Canadian Press was first published Nov. 7, 2024.
Sammy Hudes, The Canadian Press