Purpose-built-rental apartment asking rents units remained largely stable in 2024 despite a general decline in rental prices across Canada in 2024, says a new report from Rentals.ca and Urbanation.

The overall rental asking rate for all housing types declined 2.3% year-over-year in 2024, falling to a 17-month low of $2.109. But purpose-built rental asking rents remained relatively unchanged (-0.3%) from 2023, maintaining an average asking rent of $2,070.

“The downward trend for rents in Canada accelerated during the first month of 2025,” said Shaun Hildebrand, Urbanation’s president.

“Heightened downside risks for the economy, combined with declining international population inflows and multi-decade highs for apartment completions, suggest rents will continue to weaken in the months ahead.”

The Rentals.ca and Urbanation outlook on continued rent declines echoes the sentiments of CMHC’s 2024 rental report.

The overall 2024 asking-rent decline marked the first annual decrease since the COVID-19 pandemic in 2020, said Urbanation. The drop was most pronounced in houses and townhouses, which saw a 7.4% decline, and condominiums, where rents fell by 5.2% to an average of $2,219. As Connect has reported previously, the condo-rental market is burdened with a large oversupply, particularly in Toronto, the country’s largest market.

However, purpose-built rentals displayed resilience amid the broader downturn. Studio apartments were the only unit type to see an increase in asking rents, rising 1.7% year-over-year to an average of $1,591.

In terms of actual purpose-built rents, studios saw even stronger growth as prices climbed 3.1% year-over-year to $1,566. Three-bedroom purpose-built apartments also outperformed, recording a 5% increase to an average of $2,664. Meanwhile, one-bedroom and two-bedroom purpose-built rents experienced modest declines of 1.1% and 0.3%, averaging $1,876 and $2,260, respectively.

On a provincial level, Ontario experienced the sharpest rental declines, with apartment rents falling 4.7% to an average of $2,332. B.C. saw a slight 0.5% dip, with rents averaging $2,487. Manitoba was the only province to post significant rental growth, with a 5.0% increase bringing the average to $1,618.

Canada’s largest rental markets reflected the national trend, with Toronto apartment rents falling 7.1% to an average of $2,632 and Vancouver rents declining 5.8% to $2,882. Calgary experienced the steepest drop, with rents plunging 7.2% to $1,921. Conversely, Edmonton bucked the trend, recording a 2.7% increase to an average of $1,506.

Despite the overall downturn, high demand for smaller units, particularly studios, signals a continued need for affordable rental options, says the Rentals.ca and Urbanation report. While economic conditions remain uncertain, the relative stability of purpose-built rental pricing suggests that apartments will continue to play a key role in the Canadian rental market moving forward.

Image: Colliers