A new report says growth in average asking rents across Canada last month slowed to the lowest rate since October 2021, at 2.1 per cent year-over-year.
The report from Rentals.ca and Urbanation found average asking rents sat at $2,193 for September, marking the fifth straight month that the annual rate has slowed from May's nine per cent growth.
“Rents in Canada are increasing at their slowest pace in nearly three years, largely the result of foreign student enrolments dropping by roughly a half from their record highs, with the impact felt most in B.C. and Ontario,” said Urbanation president Shaun Hildebrand in a press release.
“Meanwhile, smaller, more affordable markets continue to see strong upward pressure on rents as demand shifts to less expensive parts of the country.”
Ontario and B.C. recorded the most significant annual rent declines. Average asking rents for purpose-built and condominium apartments were down 4.3 per cent to $2,380 in Canada's largest province, while the west coast province recorded a 3.2 per cent drop to $2,570.
Rents surged 23.5 per cent to an average of $1,378 in Saskatchewan, making it the fastest-growing province in the country in terms of asking price.
By city, apartment rents declined in Vancouver, Toronto, Calgary, and Montreal, while Ottawa saw a slight increase.
Vancouver's 9.5 per cent drop brought average rents down to $3,023 in September, marking the 10th consecutive month of year-over-year decreases.
In Toronto, Canada's second most expensive market for renters, average rents declined 8.1 per cent to $2,668.
The report highlighted Lloydminster as one of Canada's most affordable markets with average apartment rents of $1,178 — a figure up 27.5 per cent from last year. Other affordable markets experiencing significant growth included Saskatoon, where average prices rose 24.8 per cent to $1,428, and Quebec City, where rents jumped 24 per cent to $1,758.
Based on the report, the average asking rent for a one-bedroom unit in Canada was $1,916 in September, up 2.1 per cent from a year ago. The average asking price for a two-bedroom unit was $2,279, up 2.6 per cent.
In Barrie, the average asking rent for a one-bedroom unit was $2,088, a 6.34 per cent increase from a year ago. The average asking price for a two-bedroom unit was $2,301, a dip of 3.7 per cent.
According to Rentals.ca, of the 35 communities included in the report, Barrie had the 10th highest rent for a one-bedroom unit at $2,088 in September, which was only a 0.8 per cent increase month-to-month, but a 6.3 per cent spike from a year ago.
Overall, asking rents for purpose-built rental apartments in September rose 5.4 per cent compared with a year earlier to reach an average of $2,138.
Meanwhile, condominium apartment rents, which averaged $2,296, were down 1.7 per cent.
This report by The Canadian Press was first published Oct. 9, 2024.
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