Canadian Rent Growth Slows to Lowest Rate in Nearly Three Years Amid Market Shifts

Toronto - September 10, 2024 - Average asking rents for all residential property types in Canada increased by 3.3% year-over-year in August, reaching an average of $2,187 per month, according to Rentals.ca and Urbanation’s latest National Rent Report. This marks the slowest annual rate of rent growth in nearly three years. On a month-over-month basis, average asking rents decreased by 0.1%, extending the trend of moderation seen since May.

Rents for purpose-built and condominium rental apartments increased by 4.7% annually, averaging $2,142 in August. Purpose-built apartment rents rose 6.2% to an average of $2,118, while condominium apartment rents edged up by just 0.1%, averaging $2,308. Studio condominium rents declined for the sixth consecutive month, down 3.3% annually to $1,825, while purpose-built studio rents surged by 10.7% 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.”

B.C. and Ontario remained the provinces with the highest rents, despite experiencing annual declines. In B.C., average apartment rents dropped 5.2% annually to $2,536, while Ontario saw a 4.3% decline to $2,390. Meanwhile, Saskatchewan led rent growth with a 21.4% annual increase, bringing average apartment rents to $1,338.

Among Canada’s six largest markets, Edmonton was the only city to record annual rent growth, with apartment rents rising 9.2% to an average of $1,579. Toronto saw the steepest decline, with a 6.9% drop in apartment rents, bringing the average down to $2,697. Vancouver continued its nine-month streak of annual declines, although apartment rents began to trend upward again, reaching $3,116. Calgary, Ottawa, and Montreal all experienced marginal declines, with Calgary rents dipping 1.1% annually to $2,046, Ottawa rents falling 0.1% to $2,224, and Montreal rents decreasing 0.6% to $1,988.

Shared accommodation listings recorded an 8.0% annual increase in asking rent across four provinces, reaching an average of $1,011 in August, the highest on record. Despite this, 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.