Canada’s residential average rent dropped year-over-year for the 12th straight month in September, falling to $2.123.

The average asking rent for all residential properties declined 3.2% year-over-year, says a new report from Rentals.ca and Urbanation. As a result, average asking rents have reached a two-year low for the first time since January 2022.

The declines have followed 38 consecutive monthly increases.

“Renters in many parts of Canada are experiencing the best levels of affordability in two years, with the most expensive markets in Vancouver and Toronto seeing rents at their lowest in nearly four years,” said Shaun Hildebrand, president of Urbanation. “This is the result of new rental supply outstripping demand, which is unlikely to persist for long as supply from secondary market sources such as condos tightens and demand drivers such as population growth and employment stabilize.”

Rents fell across all property types from the same month in 2024. Townhomes saw the sharpest declines, falling 5.5%, while condo rental rates dropped 3% and purpose-built rentals experienced a 2.1% decline.

One-bedroom suites recorded the largest year-over-year rent drop at 4.1% to $1,836, two-bedroom units declined 2.6% and studios and three-bedroom homes were down 2.4% and 1.3%, respectively.

British Columbia and Alberta saw the largest apartment-rent declines, with each province recording a 5.5% year-over-year reduction. Ontario saw the second-largest decline (2.7%), while Nova Scotia (2.2%), Quebec (0.5%) and Saskatchewan (0.3%) posted smaller dents in rents.

Manitoba was the only province that recorded rent year-over-year rent growth (2.6%).

Meanwhile, the country’s six largest cities all recorded rent drops from September 2024. Vancouver felt the largest decline, falling 8.6% to $2,776, while Calgary (7.4%), Toronto (2.9%) and Edmonton (2.3%) followed in the top four. 

Ottawa (1.3%) and Montreal (0.3%) saw modest reductions.

Rentals.ca and Urbanation evaluated rents in single and semi-detached homes, townhouses, condominium apartments rented out by their owners, rental apartments and basement suites.

The two organizations are related entities.

Graphic: Courtesy of Rentals.ca and Urbanation