Average asking rent in Canada hits a 23-month low as it drops once more

Average asking rents in Canada have decreased year-over-year for the fifth month in a row, reaching their lowest point since July 2023.

The latest report from Rentals.ca and Urbanation reveals a 4.8% drop in rents in February compared to the previous year, bringing the national average to $2,088.

Shaun Hildebrand, president of Urbanation, attributes the softening rents to an oversupply of apartments, slowing population growth, and potential economic risks. He predicts rents will continue to decrease in the short term.

This decline is a significant shift from a year ago when rents were increasing by double digits. The average rent is now $105 lower than a year ago, providing relief to tenants. However, rents are still 5.2% higher than two years ago and $302 higher than five years ago.

Condo rents see steep declines

The condo rental market has seen a notable drop, with average asking rents falling by 7.6% year-over-year to $2,192. Studios and one-bedroom condos experienced the largest declines, followed by two-bedroom and three-bedroom units. Purpose-built apartments had a more modest 1.9% annual rent decrease, averaging $2,070.

Where rents have dropped the most

Several major rental markets in Canada saw price declines over the past year, including Vancouver, Toronto, Calgary, Mississauga, Brampton, and North York. However, Guelph and Halifax bucked the trend with rent increases.