Canada’s Average Rent Falls to 33-Month Low

According to the latest National Rent Report from Rentals.ca and Urbanation, the average asking rent for all residential properties in Canada declined 2.8 per cent year-over-year in February to $2,030, marking the 17th consecutive month of annual rent decreases.

Rents fell to their lowest level in 33 months and were down 7.4 per cent in comparison to two years ago, while remaining 2.3 per cent higher than three years ago.

“Canada is undergoing its largest downturn in rents in recent history,” said Shaun Hildebrand, president of Urbanation. “The supply that everyone has been waiting so long for has arrived at a time when demand has slowed, creating a rare opportunity for renters to take advantage of better affordability.”

The seasonal slowdown was more pronounced than usual in the February rental market, with asking rents declining 1.3 per cent month-over-month, the largest decrease recorded in February since 2020. Despite the national decline, several major markets, including Vancouver, Ottawa, Calgary, Edmonton, and Montreal, recorded modest monthly rent increases.

Lower rents combined with moderate wage growth have contributed to improving rental affordability across Canada. In February, the average rent represented 29 per cent of renter household income, falling below the industry’s 30 per cent affordability benchmark for the first time in more than six years.

Rent declines over the past year continued to be led by the secondary market. Condo rents fell 5.1 per cent annually to an average of $2,082, while other secondary market units declined 4.5 per cent to $2,009.

Purpose-built rental apartments remained the most resilient segment, with average rents declining 1.9 per cent year-over-year to $2,030. Across all property types, one-bedroom rents posted the largest annual decrease, falling 3.5 per cent to $1,781, while three-bedroom rents were the only segment to record growth, rising 0.6 per cent to $2,486.

Annual rent declines were concentrated in Canada’s largest provinces. Average apartment rents fell 4.4 per cent in Alberta, 4.3 per cent in Ontario, and 4.2 per cent in British Columbia, while Quebec recorded a 3.1 per cent annual decline. Saskatchewan had notable growth, with apartment rents increasing 3.3 per cent year-over-year to an average of $1,373.

Among Canada’s six largest rental markets, average apartment rents declined year-over-year across all cities. Toronto recorded the largest declines across most unit types, with studio rents falling 7.9 per cent, one-bedroom rents dropping 6.9 per cent, and two-bedroom rents decreasing 7.1 per cent. Vancouver posted the steepest decline for three-bedroom apartments at 8.8 per cent. Despite annual decreases, most major markets recorded slight rent increases compared to January, led by Vancouver, Ottawa, Montreal, Calgary, and Edmonton.

The average asking rent for shared accommodations across British Columbia, Alberta, Ontario, and Quebec declined 6.6 per cent annually in February to $900. Shared accommodation rents fell most in British Columbia and Ontario, while Ottawa and Edmonton recorded increases.