Annual rental prices fell for the 1st time in over three years, but only in big cities
Average cost of rent is down just $50 a month from June's record high
Canadian rental prices dropped by 1.2% in October compared to the same period last year, marking the first recorded annual decline since July 2021, according to a recent national report. This reduction is mostly visible in urban areas across Ontario and British Columbia. The national average rental cost now sits at $2,152 per month, down from a peak of $2,202 in June.
The decrease comes amid an ongoing affordability crisis impacting various groups, including seniors, young adults, and newcomers, who have voiced concerns about housing costs. For perspective, average rent in July 2021 was approximately $1,752, which is $400 less than current rates.
Despite rent declines in major cities like Toronto, Montreal, Vancouver, and Calgary, smaller markets are experiencing price increases due to heightened demand from Canadians seeking more affordable options.
Urbanation president Shaun Hildebrand notes that this rare nationwide rental decrease is tied to shifts in economic factors, a rising population, and the housing affordability challenges that had previously driven up rents. With new apartments reaching completion, he expects this trend to continue. According to Steve Pomeroy, a professor with McMaster University’s Canadian Housing Evidence Collaborative, a significant increase in rental construction over recent years is also helping to meet demand, alongside federal policy changes regarding temporary foreign workers and international students.
Toronto’s Federation of Metro Tenants' Associations executive director Geordie Dent acknowledged that recent market forces have finally started to ease rent pressures, though he emphasized the need for more substantial affordability measures.
