Report Shows Fifth Consecutive Monthly Slowdown as Rents Increase by 2.1% in September

A recent report indicates that the growth in average asking rents in Canada last month slowed to the lowest rate since October 2021, at 2.1 percent year-over-year.

According to a report from Rentals.ca and Urbanation, the average asking rents for September were $2,193. This marks the fifth consecutive month that the annual rate has decreased from the nine percent growth seen in May.

Urbanation president Shaun Hildebrand stated in a press release, “Rents in Canada are now increasing at their slowest pace in almost three years, largely due to a significant drop in foreign student enrollments, especially in B.C. and Ontario.”

The report also noted that smaller, more affordable markets are experiencing a strong upward pressure on rents as demand shifts to less expensive parts of the country.

Ontario and B.C. saw the most significant annual rent declines. Average asking rents for purpose-built and condominium apartments dropped by 4.3 percent to $2,380 in Ontario and by 3.2 percent to $2,570 in B.C.

On the other hand, rents in Saskatchewan surged by 23.5 percent to an average of $1,378, making it the fastest-growing province in terms of asking prices.

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In terms of city-wise trends, apartment rents decreased in Vancouver, Toronto, Calgary, and Montreal, while Ottawa saw a slight increase.

Vancouver experienced a 9.5 percent drop in average rents, bringing them down to $3,023 in September, marking the 10th consecutive month of year-over-year decreases.

Meanwhile, in Toronto, the second most expensive rental market in Canada, average rents declined by 8.1 percent to $2,668.

The report also highlighted Lloydminster as one of Canada’s most affordable markets, with average apartment rents reaching $1,178—a 27.5 percent increase from the previous year. Other affordable markets that saw significant growth include Saskatoon, where average prices rose by 24.8 percent to $1,428, and Quebec City, where rents increased by 24 percent to $1,758.

According to the report, the average asking rent for a one-bedroom unit in Canada was $1,916 in September, up 2.1 percent from the previous year. The average asking price for a two-bedroom unit was $2,279, up 2.6 percent.

Overall, asking rents for purpose-built rental apartments rose by 5.4 percent in September compared to a year earlier, reaching an average of $2,138.

Conversely, rents for condominium apartments, which averaged $2,296, decreased by 1.7 percent.