Average asking rents in Canada rose by 2.1 per cent in September, marking the smallest annual rent growth since October 2021. Despite the slowdown, Rentals.ca and Urbanation report that rents are still 13.4 per cent higher than two years ago, and 25.2 per cent 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 per cent 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 per cent annual rent increase, reaching an average of $2,138, with studio units showing the strongest growth at 11.1 per cent.

Ontario and British Columbia recorded the most significant annual rent declines, with average asking rents for purpose-built and condominium apartments down 4.3 per cent in Ontario to $2,380 and down 3.2 per cent in B.C. to $2,570. Meanwhile, rents surged in Saskatchewan by 23.5 per cent, 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 per cent year-over-year to an average of $3,023, while Toronto saw an 8.1 per cent decrease, bringing the average down to $2,668.

For the full report, click here Rent Growth in Canada Slows to 2% (rentals.ca)