Canada's Rent Growth Slows to 2%, Lowest Rate Since October 2021

Toronto – October 9, 2024 – Average asking rents for all residential property types in Canada increased by 2.1% year-over-year in September, reaching an average of $2,193 per month, according to Rentals.ca and Urbanation’s latest National Rent Report. This marks the smallest annual rent growth since October 2021. The annual rate of rent growth has slowed for five consecutive months, significantly down from May’s 9% growth.

Despite the slowdown, rents remain 13.4% higher than two years ago and 25.2% higher than three years ago, reflecting the lasting impact of the pandemic on housing costs. The slowdown in rent increases aligns with a significant reduction in non-permanent residents entering the country.

“Rents in Canada are increasing at their slowest pace in nearly three years, largely the result of foreign student enrollments dropping by roughly a half from their record highs, with the impact felt most in B.C. and Ontario,” said Shaun Hildebrand, President of Urbanation. “Meanwhile, smaller, more affordable markets continue to see strong upward pressure on rents as demand shifts to less expensive parts of the country.”

Rents for condominium apartments declined by 1.7% annually, averaging $2,296 in September. This trend was led by major markets like Vancouver (-13.6% to $3,232), Toronto (-7.7% to $2,745), and Calgary (-3.4% to $2,060). On the other hand, purpose-built apartments saw a 5.4% annual rent increase, reaching an average of $2,138, with studio units showing the strongest growth at 11.1%.

Ontario and British Columbia recorded the most significant annual rent declines, with average asking rents for purpose-built and condominium apartments down 4.3% in Ontario to $2,380 and down 3.2% in B.C. to $2,570. Meanwhile, rents surged in Saskatchewan by 23.5%, making it the fastest-growing province in the country.

Among Canada’s largest cities, apartment rents declined in Vancouver, Toronto, Calgary, and Montreal. Vancouver rents fell for the tenth consecutive month, down 9.5% year-over-year to an average of $3,023, while Toronto saw an 8.1% decrease, bringing the average down to $2,668. Calgary and Montreal both posted 2.0% annual rent declines, while Ottawa experienced a slight increase of 0.8% to $2,220.

Amongst the most affordable markets, Lloydminster led rent growth with a 27.5% annual increase, yet maintained its position as Canada’s most affordable city with average apartment rents of $1,178. Other affordable markets experiencing significant growth include Saskatoon (+24.8%) and Quebec City (+24.0%).

Shared accommodation rents grew by 6.9% annually, averaging $1,009 in September, as demand for these more affordable options continues to rise, particularly in higher-priced regions like Toronto and Vancouver.