Rents in Canada have not been this low in two years, a new report by Rentals.ca and Urbanation shows, marking a fresh milestone for Canada’s rental market.
Average asking rents for all residential properties in September in Canada declined by 3.2 per cent compared to September last year, dropping to $2,123 a month and marking the 12th consecutive month of rents declining in Canada.
Compared to September 2023, rents were down 1.2 per cent, marking the first two-year decline since January 2022.
“Renters in many parts of Canada are experiencing the best levels of affordability in two years, with the most expensive markets in Vancouver and Toronto seeing rents at their lowest in nearly four years,” said Shaun Hildebrand, president of Urbanation.
“This is the result of new rental supply outstripping demand, which is unlikely to persist for long as supply from secondary market sources such as condos tightens and demand drivers, such as population growth and employment, stabilize,” he said.
This follows a steady period of rent increases after the COVID-19 pandemic, with 38 consecutive months of rent increases between August 2021 and September 2024.
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The report cites “record high apartment completions, population decreases for non-permanent residents, and a weakening job market,” as reasons for dropping rents.
Purpose-built rentals saw a 2.1 per cent decrease with average rents at $2,093 compared to September 2024, while the average condo saw rents go down three per cent to $2,226.
The sharpest fall in rents was for houses and townhouses, which saw average rent dropping 5.5 per cent to $2,178.
Average rent for a one-bedroom home in Canada was $1,836 in September, a decline of 4.1 per cent compared to the same time last year. Two-bedroom rents decreased 2.6 per cent to an average of $2,220, and studio rents declined 2.4 per cent annually to an average of $1,616. Three-bedroom rents recorded the smallest annual decline of 1.3 per cent to an average of $2,561.
Some of the country’s hottest markets saw the steepest declines. While Vancouver still had the highest rents across property types in the country, it saw a decline of 8.2 per cent compared to September last year.
Toronto, with the second-highest rents at $2,592 a month across all property types, saw rents go down by 2.9 per cent.
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