In May, the average asking rent across the country was $2,129, a 3.3 per cent decline compared to the same month last year. While the pace of decrease has slowed the overall trend points to easing pressure on renters following several years of steep increases.
The latest report from Rentals.ca and Urbanation highlights that most types of rental housing experienced annual declines in prices. Purpose-built apartments saw a two per cent drop, bringing the average asking rent to $2,117. Condominium apartments saw a 3.6 per cent decrease, averaging $2,192. Houses and townhomes declined the most, with a seven per cent drop to an average of $2,196.
Several factors are contributing to this softening in the market. An increase in newly completed rental units has added much-needed supply, helping to alleviate some of the demand-side pressure. Slower population growth and ongoing economic uncertainty have also played a role.
Despite the recent easing, asking rents remain elevated compared to pre-pandemic levels. Nationally, the average asking rent is still 5.7 per cent higher than it was two years ago, and 12.6 per cent above what renters were paying three years ago. This underscores the broader challenge of housing affordability, which continues to impact Canadians.
Ontario saw the largest provincial drop in May, with rents falling 3.6 per cent to an average of $2,335. British Columbia followed closely with a 2.6 per cent decline, bringing average asking rents to $2,462. Alberta and Quebec experienced more modest decreases of 2.4 per cent and 1.8 per cent, respectively. Saskatchewan stood out with the highest year-over-year rent increase, climbing 3.9 per cent to an average of $1,386. Nova Scotia and Manitoba also saw gains at 2.1 per cent and 0.1 per cent, respectively.
Canada’s largest cities presented a mixed picture. Calgary saw the sharpest decline in apartment rents, dropping 7.9 per cent to $1,928. Toronto and Vancouver also experienced significant reductions of 6.8 per cent and 5.9 per cent, respectively. Montreal posted a 3.3 per cent drop, while smaller increases were noted in Edmonton and Ottawa, where rents edged up 0.7 per cent and 0.4 per cent, respectively.
While the recent downturn signals a reprieve for some renters, affordability remains a concern. Analysts suggest continued increases in housing supply and a more stable economic outlook will be crucial for maintaining this positive shift in the rental landscape.
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