Rents in Canada have fallen for 24 consecutive months, report says

Canadian rents have declined for 24 consecutive months, according to a report by Rentals.ca and Urbanation. The average asking rent for all residential properties in the country was $2,034 in September, a 4.2% decrease from the previous year. This represents the lowest average asking rent for September since 2022. In May 2024, average rents peaked at $2,202 before declining steadily since then.

By September, rents were 7.3% lower than in September 2024 and 9.2% below the May 2024 peak. Shaun Hildebrand, president of Urbanation, noted that the two-year decline is the longest downturn in recent rental market history. The main reason for falling rents is over-supply in major cities like Toronto and Vancouver. These cities' rents have risen in recent months, slowing the annual decline rate as renters return to the rental market.

Condos experienced the steepest rent drop, falling 7.8% to an average of $2,052. Studio condos saw a 9.6% decline. Single-family homes and townhomes followed, with rents down 7.4% to $2,016. Purpose-built rentals remained more stable, down 2.7% to $2,036.