Rental Market Update

Canada Sees Continued Slowdown in Rent Growth: October 2024 Update

The pace of rent growth in Canada has eased for the fifth consecutive month, declining from over 9% in May. Despite this slowdown, average asking rents remain significantly higher than in previous years, showing a 13.4% increase compared to two years ago and a 25.2% increase compared to three years ago during the COVID-19 pandemic. This decline in rental prices aligns with a notable reduction in the net inflows of non-permanent residents.

In September, the average asking rents for condominium apartments decreased by 1.7% year-over-year, now averaging $2,296. The most pronounced drops in average condo rents were observed in Vancouver (-13.6%, now $3,232), Toronto (-7.7%, now $2,745), and Calgary (-3.4%, now $2,060). Overall, condo rents decreased across all unit types except for three-bedroom units. Studio apartments experienced the most significant decline, with rents falling by 3.9% to an average of $1,871.

This trend indicates a broader cooling in the rental market, providing some relief to renters even as rents remain elevated compared to the pre-pandemic period.