Canadian Rents Fall for 24th Consecutive Month, Hitting Lowest September Level Since 2022
Average residential rents in Canada dropped to $2,034 in September, marking two full years of consecutive declines. A report by Rentals.ca and Urbanation attributes the downturn primarily to over-supply in major markets like Toronto and Vancouver.
Average residential rents across Canada have fallen for the 24th consecutive month, reaching $2,034 in September, according to a report by Rentals.ca and Urbanation. This represents a 4.2 per cent decrease compared to the same month in the previous year and marks the lowest September rent level since 2022.
Shaun Hildebrand, president of Urbanation, stated that this is the longest downturn the Canadian rental market has seen in recent history. Average asking rents previously reached a record high of $2,202 in May 2024. Current rents are now 7.3 per cent below September 2024 levels and 9.2 per cent below that May 2024 peak.
Over-supply in key rental markets such as Toronto and Vancouver has been identified as the primary driver of falling rents. However, annual declines in those cities are narrowing as renters return to the market.
Condominiums experienced the sharpest drop among property types, with average condo rents falling to $2,052, a decline of 7.8 per cent compared to the previous year. Studio condos saw an even steeper 9.6 per cent drop in rents. Secondary housing units, including houses and townhomes, saw rents fall by 7.4 per cent to $2,016.
Purpose-built rentals remained the most resilient property type during the downturn, declining by 2.7 per cent to an average of $2,036.