Average rent in Canada drops for first time since 2021

For the first time since July 2021, average asking rents for all residential property types in Canada saw an annual drop in October. 

According to the latest report from Rentals.ca and Urbanation, rents dropped 1.2 per cent compared to October 2023, bringing the average monthly rent to $2,152.

This decline is primarily driven by decreases in larger cities, particularly in British Columbia and Ontario. Vancouver recorded a year-over-year drop of 9.1 per cent for one bedroom units, Burnaby, B.C. saw a 9.4 per cent decrease, and Toronto registered an 8.7 per cent decline. Calgary and Montreal also reported annual decreases of 4.3 per cent and 4.6 per cent, respectively.

“It is a rare occurrence for rents to decline at the national level. This is happening as the key drivers of rent growth in recent years—a strengthening economy, quickly rising population and worsening homeownership affordability—are beginning to reverse,” says Shaun Hildebrand, president of Urbanation. “As a result, we can likely expect this trend for rents to continue in the near term, particularly as apartment completions remain at record highs.”

Month-over-month, average asking rents fell 1.9 per cent in October, and are down 9.3 per cent from the annual increase posted in May.

Smaller markets see big jumps

While the more expensive markets saw declines, traditionally affordable markets saw steep annual increases. Saskatchewan registered a 17.1 per cent year-over-year increase in apartment rents in October, reaching an average of $1,358—still well below the national average. 

In Nova Scotia, asking rents for apartments increased at the second-fastest pace provincially, rising 9.6 per cent year-over-year to $2,298.

Rent decreases by unit type

In B.C., apartment rents for one-bedroom units fell the most, down 4.9 per cent annually to an average of $2,254. In Ontario, the largest annual decline in apartment rents was for two-bedroom units, which saw a 6.9 per cent decrease to an average of $2,583.

In Quebec, declines in apartment rents were seen primarily in one-bedroom units, which fell 3.2 per cent year-over-year to an average of $1,681. 

Across most provinces, three-bedroom apartments fared best, seeing either the smallest rent declines or the largest increases.