Average asking rents fall annually for eighth straight month: report

The national average asking rent in May was down 3.3% from a year earlier at $2,129, marking the eighth consecutive month of year-over-year decreases.

The monthly report from Rentals.ca and Urbanation said Monday that asking rents held steady from April, with a 0.1% month-over-month increase.

Purpose-built apartment asking rents declined 2% from a year ago to an average of $2,117, while asking rents for condominium apartments fell 3.6% to $2,192.

Rents for houses and townhomes declined 7% to $2,196.

Urbanation president Shaun Hildebrand said rents have eased in part due to a surge in supply from newly completed apartments, a slowdown in population growth and a heightened level of economic uncertainty.

“The easing in rents this year across most parts of the country is a positive for housing affordability in Canada following a period of extremely strong rent inflation lasting from 2022 to 2024,” Hildebrand said in a news release.

The report said average asking rents in Canada are 5.7% higher than they were two years ago and 12.6% above levels from three years ago.

Over the past five years, rents in Canada have increased by an average of 4.1% annually, outpacing average wage growth of roughly 3%, it added.

Ontario recorded the largest rent decline in May, with asking rents falling 3.6% year-over-year to an average of $2,335, followed by B.C.’s 2.6% decrease to $2,462, Alberta’s 2.4% decrease to $1,745 and Quebec’s 1.8% decrease to $1,964.

Saskatchewan led the way for year-over-year rent growth, at 3.9% to an average of $1,386, followed by Nova Scotia at 2.1% to $2,284 and Manitoba at 0.1% to $1,624.

Apartment rents also fell in four of Canada’s six largest cities, with the other two recording less than 1% annual growth.

Calgary saw the largest drop at 7.9% to $1,928, followed by a 6.8% annual decrease in Toronto to $2,594 and a 5.9% decline in Vancouver to $2,830.

Montreal apartment rents were down 3.3% to $1,970, while rents in Edmonton ticked up 0.7% to $1,561 and 0.4% in Ottawa to $2,198.year to an average of $2,335, followed by B.C.’s 2.6% decrease to $2,462, Alberta’s 2.4% decrease to $1,745 and Quebec’s 1.8% decrease to $1,964.