Average rents for vacant rental properties in Canada declined to $2,139 in November, marking a 15-month low, according to the latest National Rent Report. On an annual basis, rents declined 1.6 per cent compared to the same period last year, while month-over-month, they dipped slightly by 0.6 per cent, continuing the trend seen in October.
According to the analysts, much of the annual decrease is due to rents dropping in the latter half of 2024, with rents currently down 2.8 per cent since July. That said, they still remain elevated compared to historical levels—up 6.7 per cent from two years ago and 18.8 per cent from three years ago. Over the past five years, rents have grown at an average annual rate of 3.4 per cent, in line with long-term trends.
“Overall, the recent decline in rents has been very mild and is allowing affordability to improve following a rapid escalation in rents over the past few years,” said Shaun Hildebrand, President of Urbanation. “Declines so far are mainly focused within the secondary market for condos and houses, mostly in B.C. and Ontario, while purpose-built rents are stable.”
Average asking rents for vacant purpose-built and condominium apartments decreased by 0.2 per cent annually to $2,120 in November. One-bedroom rents declined 1.2 per cent year-over-year to $1,921, while two-bedroom rents fell by 1 per cent to $2,302. In contrast, rents for studios and three-bedroom apartments continued to rise, increasing 5 per cent and 5.1 per cent, respectively.
In Ontario, the rental market experienced the sharpest declines, with apartment rents dropping 6.4 per cent annually to $2,351, led by a 7.6 per cent decrease in two-bedroom rents. British Columbia saw more moderate declines, with apartment rents falling 2.3 per cent year-over-year to $2,524. Meanwhile, rents in Quebec edged down by 0.4 per cent to $1,969.
While the decline in national rent was driven by decreases in the most populous provinces, there have been some regional increases, including Alberta (up 3.7 per cent), Saskatchewan (up 12.1 per cent), and Manitoba (up 7.9 per cent). In the Maritimes, New Brunswick saw a 5.1 per cent increase in average asking rents, and Nova Scotia saw rents rise by 4.4 per cent. Rents in Newfoundland and Labrador remained close to flat throughout the past year, declining by just 0.4 per cent.
Meanwhile, Canada’s largest rental markets saw significant rent decreases in November. Average rents in Toronto fell 9.4 per cent year-over-year to $2,640, a 28-month low. Vancouver rents dropped 8.9 per cent to $2,888, marking a 30-month low. Calgary, Ottawa, and Montreal also recorded declines of 5.8 per cent, 3.0 per cent, and 2.3 per cent, respectively.
Listings for shared accommodations increased 52 per cent year-over-year in November. The national average asking rent for shared units rose by 3.9 per cent to $997, with growth led by British Columbia and Ontario.
For the full report, visit www.rentals.ca
