Average rent in Canada decreases for the first time since 2021

In October, average asking rents for all residential property types in Canada experienced an annual decrease for the first time since July 2021. According to the most recent report from Rentals.ca and Urbanation, rents dropped by 1.2% compared to October 2023, bringing the average monthly rent to $2,152.

This decline was mainly driven by decreases in larger cities, particularly in British Columbia and Ontario. Vancouver saw a year-over-year drop of 9.1% for one-bedroom units, Burnaby, B.C. experienced a 9.4% decrease, and Toronto recorded an 8.7% decline. Calgary and Montreal also reported annual decreases of 4.3% and 4.6%, 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% in October, and are down 9.3% 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 saw a 17.1% 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% year-over-year to $2,298.

Rent decreases by unit type

In B.C., apartment rents for one-bedroom units decreased the most, down 4.9% 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% decrease to an average of $2,583.

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

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