Rent prices decrease for the first time in years but still exceed pre-pandemic levels

November 8, 2024 TruthUSA

After reaching an all-time high in May, the average rent in Canada fell in October to its lowest level in 12 months, marking the first year-on-year decline since the pandemic, according to a new report.

Average prices, however, remain at their highest levels since they began rising three years ago.

The average asking rent for all residential property types in Canada dropped by 2.1 percent in October compared to the previous year, falling from $2,178 to $2,152, according to a November report by rental listing website Rentals.ca and real estate data agency Urbanation.

This new average rent is $50 less per month than the record high of $2,202 reached in May, but still higher than in October 2021, when the average rent was almost $400 cheaper.

“Rent growth in Canada has been consistently slowing since the summer, with the latest decline representing a sharp reversal from the 9.3 percent annual increase posted in May,” said the report. “It was the first year-over-year decline in rents since July 2021 during the COVID-19 pandemic.”

The decline was mainly seen in larger cities such as Vancouver, Toronto, Calgary, and Montreal, while in small and mid-sized cities, particularly within British Columbia and Ontario, rent continued to rise.

The report is based on monthly online listings on the Rentals.ca network, including properties such as rental apartments, basement apartments, townhouses, condominium apartments, semi-detached houses, and detached houses.

Rising Rents in Affordable Markets

Toronto recorded the largest annual decline in asking rents in October, with a 9.2 percent drop to $2,642. Vancouver followed with an 8.4 percent decrease to $2,945, and in Calgary the average rent fell 4.7 percent to $1,995. Montreal saw the smallest decline among these cities, just under 3 percent, to an average of $1,987.

Small and medium-sized cities recorded some of the largest increases in average rent, led by Lloydminster, Alta.–Canada’s most affordable rental market–which saw a 24.3 percent increase to an average of $1,176. Pointe-Claire, Que., had the second largest increase at 23.1 percent, bringing its average rent in October to $2,269.

The top five smaller markets with rent increases were rounded out by Saskatoon at almost 19 percent, and Lethbridge, Alta., and Gatineau, Que., which both recorded an increase of 13 percent.

Among Canada’s largest rental markets, Edmonton recorded the highest annual rental growth, up 8.4 percent in October to an average of $1,584, “while still maintaining a large affordability advantage over other big cities,” the report noted.

Ottawa, meanwhile, saw little change in its average asking rent at $2,207 in October, up 0.4 percent from last year.

National Rent Ranking

In October, B.C. and Ontario continued to be home to the most expensive cities in the rental market. Vancouver led the report’s 35-city ranking, with an average price of $2,610 for a 1-bedroom rental unit, followed by Burnaby, B.C., at $2,398 for the same type of rental. Toronto came third, with an average price of $2,380 for a 1-bedroom place.

The top 10 were completed by Mississauga, Ont. ($2,308), Oakville, Ont. ($2,304), North York, Ont. ($2,233), Etobicoke, Ont. ($2,220), Burlington, Ont. ($2,191), Victoria ($2,151), and Barrie, Ont. ($2,080), all for a 1-bedroom rental.

Fort McMurray, Alta., ranked at the bottom of the list, with a one-bedroom unit going for $1,218 on average. Next from the bottom was Saskatoon, where a similar unit averaged $1,293. Regina and Winnipeg followed, with one-bedroom units priced at $1,296 and $1,382 respectively.

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