The average asking rent for all residential properties in Canada fell 2.3% year-over-year in August to $2,137, marking the 11th straight month of annual rent decreases, according to the latest National Rent Report from Rentals.ca and Urbanation.

This represents the longest period of declines since early in the COVID-19 pandemic.

Despite the drop, average asking rents remained 1% above levels from two years ago, reflecting lingering upward pressure over the longer term.

“Rents have decreased in Canada on an annual basis for almost a year now,” Shaun Hildebrand, president of Urbanation. “However, rent reductions have been mild for the most part, with the steepest declines found in Vancouver, Toronto, and Calgary, where rents are high and new apartment supply has been growing quickly.

“Conditions should continue to favour renters in the coming months as the market enters its slower season.”

Purpose-built rentals posted the smallest annual decline in August at 0.4%, compared to a 3.7% drop for condos and 6.0% for houses and townhomes. Over the past three years, purpose-built rents rose 22.6%, far outpacing condo rents (+4.3%) and houses/townhomes (-0.4%). Studios remained the strongest segment, climbing 1.1% annually and 20.7% during the three-year period. Within purpose-built rentals, three-bedroom units rose 3.5% to $2,772, while condo studios saw the steepest drop at 7.7%.

Alberta led provinces in annual rent declines for apartments, down 3.5%, followed by B.C. (-2.7%), Ontario (-2.5%), Nova Scotia (-2.2%), and Quebec (-0.2%). Saskatchewan posted the fastest growth, with a 3.2% annual increase and a 28.7% gain over three years, while Manitoba edged up 1.2%.

Among major cities, Vancouver recorded the sharpest annual decline at 9.5%, followed by Calgary (-6.6%), Toronto (-3.4%), Ottawa (-1.0%) and Montreal (-0.5%). Edmonton rose 0.9% and led three-year growth at 25.5%.

Shared accommodations averaged $952 in August, down 5.9% year-over-year for the ninth straight month of declines. On a provincial basis, rents dropped 6.5% in Ontario and 5.9% in B.C., while Ottawa and Toronto saw the biggest increases among major urban markets.

Ottawa’s average rent climbed 17.8% year-over-year to $1,113 and Toronto inched up 0.8% to $1,244.

The data covers single-detached, semi-detached, townhouses, condominiums, rental apartments, and basement apartments, excluding outlier listings and single-room rentals.

Urbanation and Rentals.ca are related entities.

Image: Courtesy of Rentals.ca and Urbanation