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Canadian Average Apartment Rent Drops for First Time in Three Years

In a surprising shift, Canada’s average apartment rent has decreased for the first time since the COVID-19 pandemic.

The national average rent for October fell by 1.2% year-over-year, bringing average monthly rents for all residential properties to $2,152, according to the Rentals.ca monthly report prepared in collaboration with Urbanation. That marked the first decline in rents since July 2021, signaling a significant change in the rental market.

The data shows that apartment rent growth slowed throughout the summer, with a more pronounced decline seen in recent months. October saw a 1.9% drop from September, leading to an overall 2.2% decline over the past three months. The average rent has dipped $49 per month $49 since July.

Urbanation and Rentals.ca report that most rent declines were concentrated in major urban centres, notably in British Columbia and Ontario, with markets like Vancouver, Toronto, Calgary, and Montreal seeing some of the largest annual decreases in apartment rents.

The finding of less demand in urban centres coincides with a similar finding by RentCafe. According to a recent RentCafe report, apartment hunters are showing a preference for smaller markets this year.

The national average rent decrease was also heavily influenced by a significant drop in condominium rental prices, with condo rents falling 3.8% year-over-year.

Vancouver topped the list of Canada’s most expensive cities for renting apartments, though it reported a 9.1% annual decrease in one-bedroom rents (now averaging $2,610) and a 9.2% drop in two-bedroom units (now $3,430). In Toronto, average rents dropped 8.7% for one-bedroom apartments (to $2,380) and 9.7% for two-bedroom units (to $3,091). The Vancouver suburb of Burnaby, B.C., another high-priced area, also reported notable annual declines, with one- and two-bedroom rents decreasing 9.4% and 8.4%, respectively.

In Ontario, the Toronto suburbs of Mississauga and Oakville were also impacted by rent decreases, with one-bedroom apartments in both cities dropping 1.5% and 1.1%, respectively. These shifts reflect a growing affordability in Ontario’s typically high-cost urban areas, though they still remain among the highest in the nation, according to the report.

While Ontario and B.C. experienced the most significant rental decreases, provinces like Saskatchewan, Alberta, and Manitoba saw the most rapid rent increases. Saskatchewan reported a 17.1% rise in average rents, followed by Nova Scotia with a 9.6% increase, marking these regions as growth areas in Canada’s rental market.

Smaller cities and more affordable markets continued to experience robust rent growth. Saskatchewan’s Lloydminster led the country with a 24.3% year-over-year increase in rents, while the Montreal suburb of Pointe-Claire, Que., saw a 23.1% rise, placing these smaller centre among the fastest-growing rental markets.

Meanwhile, shared-accommodation listings spike, jumping 12% month-over-month and 58% year-over-year in October. The suddent rise reflects a shift towards more affordable, flexible living arrangements as Canadian renters seek budget-friendly options, according to Rentals.ca and Urbanation. Shared-accommodation rents increased across most provinces, with the highest annual increases in Quebec (5.3%) and Alberta (3.9%).

The Canadian average-rent drop offers some respite to renters who have faced rising housing costs since the pandemic. However, affordability remains a challenge, particularly in the country’s largest and most expensive cities, the report states.

The evolving rental market dynamics indicate a potential turning point as housing supply issues, economic pressures, and shifting demand patterns play a role in reshaping Canada’s rental landscape.

Canadian apartment hunters are increasingly gravitating toward smaller markets, says a new RentCafe report.

Winnipeg and Saskatoon topped the list of the most in-demand multi-family rental home locations in the third quarter of 2024, according to RentCafe’s findings.

Prairie locations were among the most coveted. Meanwhile, Canada’s three largest cities, placed well below the top 10.

Toronto, Canada’s largest city ranked 20th with a score of 57.62 points.

“Toronto serves as an example that renter interest in Canada’s largest apartment markets may have plateaued,” noted RentCafe.

Vancouver and Montreal ranked 21st and 22nd, respectively.

To determine Canada’s top trending cities, RentCafe analyzed millions of interactions on its website, examining such factors as apartment availability, listing views, favourited apartments, and saved searches.

“High home prices and limited housing options continue to make renting the go-to option for many Canadians,” reported RentCafe. “As a result, renters across the country are consistently on the lookout for apartments that align with their budgets and lifestyles, even beyond the peak moving season.”

Winnipeg posted a perfect score of 100, driven by strong engagement from renters across Canada, including those from Toronto, Calgary, and Vancouver. The Manitoba capital’s appeal is rooted in its robust economy, which attracts apartment hunters nationwide, according to RentCafe.

Saskatoon ranked second with a score of 90.49, benefiting from a 27% increase in online traffic and a 34% rise in favourited listings year-over-year. According to RentCafe, Saskatoon’s renters primarily hail from nearby cities such as Winnipeg, Calgary, and Regina.

Edmonton secured third place with a score of 88.88 as the Alberta capital recorded the highest number of favourited apartments. Interest came largely from young professionals and families based in Vancouver, Toronto, and Calgary.

Victoria and Ottawa rounded out the top five, with both cities showing significant growth in favourited listings and online traffic.

Despite its seemingly low popularity, Toronto still ranked 15th for favourited listings, indicating that the market remained competitive for those actively searching. Similarly, Vancouver continued to attract high demand for listings, especially from nearby communities in spite of its low result.

As larger urban centres see demand slowing, smaller markets are growing in popularity. The Prairies’ popularity reflects renters’ pursuit of affordable living, quality of life, and better job prospects in regions outside traditional hubs, according to RentCafe.

Meanwhile, Montreal, despite its ranking as 22nd, still sees a surge in rental interest leading up to Quebec’s Moving Day on July 1.

The city’s population grew by 100,000 in 2023 alone, making quick rental decisions crucial in the tight market.

In addition to receiving demand from apartment hunters in the region, Montreal attracted prospective renters from Toronto, Ottawa and New York City.

Ontario was the most in-demand region as Ottawa (fifth), Kingston (eighth), London (ninth) and London (ninth) placed in the top 10

Although Calgary is often viewed as a vibrant multi-family market, the city placed 15th overall. But Calgary still ranked 10th in favourited listings. That suggests interested Calgary renters are “keen to secure a lease more quickly,” according to the report.

Most of Calgary’s interested out-of-province renters were based in Vancouver and Toronto when RentCafe compiled its data.

Toronto-based RentCafe assessed 25 cities across the country.

RentCafe is owned by Yardi Systems, a global property-management software company based in Santa Barbara, Calif. Yardi’s Canadian head office is in Toronto, and the company has a strong presence across the country.

Image: Courtesy of RentCafe

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About Monte Stewart

Monte Stewart serves as Content Director - Canada for Connect Commercial Real Estate. Based in Vancouver, British Columbia, Monte provides daily news coverage of major Canadian commercial real estate markets, including Vancouver, Toronto, Montreal and Calgary. He has written about the real estate sector for various media outlets and Avison Young since the early 2000s. In addition, he has covered sports, general news and business for several leading wire services and publications, including The Canadian Press, The Associated Press, The Calgary Herald, The Globe and Mail, Research Money, The Daily Oil Bulletin, Natural Gas World and The Toronto Star. Monte is active in his community as a youth basketball coach and raises funds for such charitable causes as Movember.

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