Apartment prices are plunging across the country, with Calgary and Toronto leading the charge
The average asking rent for residential properties across Canada dropped to $2,088 in February, representing a 4.8% annual decline, according to the latest National Rent Report from Rentals.ca and Urbanation. The report noted that this marks the largest yearly decrease since April 2021 and the fifth consecutive month of year-over-year rent declines.
Despite the recent downturn, average rents remain 5.2% higher than two years ago and 16.9% above pre-pandemic levels. Experts attribute the current trend to an oversupply of apartments and a slowdown in population growth.
Market trends
Since February 2024, the average asking rent in Canada has dropped by $105 per month, reversing the $209 per month increase observed between February 2023 and February 2024. However, rents are still $302 per month higher than five years ago.
Apartment rents declined 2.9% annually to an average of $2,084. Ontario recorded the steepest decline at 4.2%, bringing average rents down to $2,329. British Columbia and Quebec also saw decreases of 1.0% and 0.6%, respectively. Meanwhile, Alberta (+1.4% to $1,732) and Nova Scotia (+1.2% to $2,171) experienced modest increases. Saskatchewan (+5.2% to $1,329) and Manitoba (+3.4% to $1,606) led in rent growth.
Declining rents in major cities
Among Canada’s major cities, Calgary saw the largest annual rent decline for apartments, dropping 7.0% to $1,916. Toronto followed with a 6.7% decrease, bringing average apartment rents to $2,615, while Vancouver’s rents fell 4.8% to $2,870. In Toronto, rents have stabilized month-over-month but remain at their lowest point in two-and-a-half years. Studio and one-bedroom units in Toronto, Vancouver, and Calgary experienced the most significant price reductions.
Most expensive and affordable markets
Ontario continued to dominate both ends of the rental market spectrum. Oakville emerged as the second most expensive rental market in Canada at $2,829 per month. Conversely, Windsor ($1,620), Welland ($1,726), and Chatham-Kent ($1,787) ranked among the most affordable.
Quebec City led rent increases among mid-sized markets with a 12.3% year-over-year rise, followed by Oakville (+12.1%) and Saskatoon (+10.3%). Meanwhile, Cote Saint-Luc (-18.2%), Kingston (-10.9%), and Windsor (-6.1%) recorded the largest declines.
Shared rental market weakens
The report also highlighted that the shared rental market also showed signs of weakening, with listing volumes declining by 29% from January. Shared accommodation rents in Toronto fell 8.2% to $1,176, while Montreal saw an 8.0% drop to $870.
Outlook
“Rents in Canada are softening as supply is outweighing demand,” said Shaun Hildebrand, president of Urbanation. “Apartment completions are currently running at record highs, while at the same time, population growth has slowed and the economy faces heightened risks due to a potential trade war with the US. Expect rents to continue decreasing in the near term.”
The National Rent Report tracks rental market trends at the national, provincial, and municipal levels, analyzing data from the Rentals.ca Network and Rentfaster.ca. The report is compiled by Urbanation, a Toronto-based real estate research firm that has provided market insights since 1981.
Data in the report includes single-detached homes, semi-detached homes, townhouses, condominium apartments, rental apartments, and basement apartments, with outlier listings and single-room rentals excluded.
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