Asking rents for purpose-built and condominium apartments in Canada increased by 4.7 per cent marking the slowest annual rate of rent growth in nearly three years, according to the latest National Rent Report. On a month-over-month basis, average asking rents decreased by 0.1 per cent, extending the trend of moderation seen in Canada’s rental market since May.
“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.”
In August, purpose-built apartment rents rose 6.2 per cent to an average of $2,118, while condominium apartment rents edged up by just 0.1 per cent, averaging $2,308. Studio condominium rents declined for the sixth consecutive month, down 3.3 per cent annually to $1,825, while purpose-built studio rents surged by 10.7 per cent to $1,784.
B.C. and Ontario remained the provinces with the highest rents, despite experiencing annual declines. In B.C., average apartment rents dropped 5.2 per cent annually to $2,536, while Ontario saw a 4.3 per cent decline to $2,390. Meanwhile, Saskatchewan led rent growth with a 21.4 per cent 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 per cent to an average of $1,579. Calgary, Ottawa, and Montreal all experienced marginal declines, while Toronto saw the steepest decline at 6.9 per cent. Vancouver continued its nine-month streak of annual declines, although apartment rents began to trend upward again.
Shared accommodation listings recorded an 8.0 per cent 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.
