Rents drop nationwide but remain higher than pre-pandemic levels in many regions
The average asking rent for all residential properties in Canada dropped to $2,139 in November, a 15-month low, according to the latest National Rent Report from Rentals.ca and Urbanation.
The report revealed a 1.6% year-over-year decline and a 0.6% drop from October, continuing a trend of falling rents seen since July.
Despite this decline, rents remain historically high, with prices up 6.7% over the past two years and 18.8% compared to three years ago. Over five years, rental rates have grown at an average annual pace of 3.4%.
Shaun Hildebrand, President of Urbanation, said that while the decline is mild, it represents a step toward improving affordability.
“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,” Hildebrand said in the report.
He added that the decreases are largely concentrated in the secondary market for condos and houses, particularly in British Columbia and Ontario, while purpose-built rentals have remained stable.
In November, average asking rents for purpose-built and condominium apartments saw a modest annual decline of 0.2%, settling at $2,120. Rents for one-bedroom units fell 1.2% year over year to $1,921, while two-bedroom apartments dropped 1.0% to $2,302. In contrast, rents for studios and three-bedroom apartments increased by 5.0% and 5.1%, respectively.
Regionally, Ontario experienced the sharpest rental declines, with apartment rents falling 6.4% year over year to $2,351, including a notable 7.6% drop in two-bedroom rents. British Columbia followed with a 2.3% decrease, bringing the average rent to $2,524. Quebec saw a more moderate decline of 0.4%, with rents averaging $1,969.
Meanwhile, provinces like Alberta (+3.7%), Saskatchewan (+12.1%), and Manitoba (+7.9%) posted annual rent increases. The Maritimes also saw rent growth, with New Brunswick and Nova Scotia rents rising 5.1% and 4.4%, respectively.
Read next: Housing affordability needs to return to pre-pandemic levels: CMHC
Canada’s largest cities also reported significant rent drops. Toronto rents fell 9.4% year over year to $2,640, reaching a 28-month low. Vancouver rents dropped 8.9% to $2,888, the lowest level in 30 months. Calgary, Ottawa, and Montreal also experienced declines of 5.8%, 3.0%, and 2.3%, respectively.
Despite the declines, rental prices remain elevated, particularly in major urban areas. The report notes that shared accommodations have become more popular, with listings for shared units increasing by 52% year-over-year. The national average rent for shared accommodations rose 3.9% to $997, with the most substantial growth in British Columbia (+4.7%) and Ontario (+3.8%).
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