Average asking rents for residential properties across Canada increased by 3.3 percent year-over-year in August, reaching $2,187 per month, according to the latest National Rent Report from Rentals.ca and Urbanation.
This marks the slowest annual rent growth in nearly three years, signalling a shift in the housing market. On a month-to-month basis, rents dipped by 0.1 percent, continuing the moderation trend that began in May.
Rents for purpose-built and condominium apartments rose 4.7 percent annually, averaging $2,142 in August. Purpose-built apartment rents jumped 6.2 percent to $2,118, while condominium apartment rents saw a slight increase of 0.1 percent, averaging $2,308. Notably, studio condominium rents dropped for the sixth consecutive month, falling 3.3 percent to $1,825, while purpose-built studio rents surged 10.7 percent to $1,784.
“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.”
British Columbia and Ontario continued to have the highest rents in the country, despite recording annual declines. Average apartment rents in B.C. dropped 5.2 percent year-over-year to $2,536, while Ontario rents fell 4.3 percent to $2,390. Saskatchewan led the country in rent growth, with a 21.4 percent annual increase, bringing the average apartment rent to $1,338.
Among Canada’s six largest markets, Edmonton was the only city to record annual rent growth, with rents rising 9.2 percent to an average of $1,579. Toronto saw the steepest decline, with rents dropping 6.9 percent to an average of $2,697. Vancouver continued its nine-month streak of annual declines, but rents showed signs of recovery, rising to $3,116. Calgary, Ottawa, and Montreal also experienced slight declines, with Calgary rents falling 1.1 percent to $2,046, Ottawa dipping 0.1 percent to $2,224, and Montreal dropping 0.6 percent to $1,988.
Shared accommodation listings across four provinces recorded an eight percent annual increase in asking rents, reaching an average of $1,011 in August, the highest on record. While Vancouver and Toronto saw declines in roommate rents, falling to $1,481 and $1,234 respectively, other cities such as Calgary, Ottawa, and Montreal experienced increases, with rents reaching $928, $944, and $950, respectively.
As supply increases and demand stabilizes, Canada’s rental market appears to be moving toward a more balanced state, with rent growth slowing across many of the country’s largest cities.
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