Rental Market Update

Year-Over-Year Rent Decline in Canada Signals Shift in Rental Landscape

In October, the average asking rent for all residential property types in Canada was $2,152, indicating a modest 1.2% decrease compared to the previous year. This marks a pivotal moment, as it is the first year-over-year rent decline since July 2021 during the COVID-19 pandemic. The most notable drops were observed in larger cities across Ontario and British Columbia, as well as in Calgary and Montreal. Meanwhile, many smaller, more affordable markets in Canada continue to experience robust rent increases, highlighting a stark contrast in the rental landscape.

The trend of slowing rent growth in Canada has persisted since the summer. This recent decline is significant, especially compared to May's impressive 9.3% annual increase. In October alone, average asking rents dipped by 1.9% month-over-month, accumulating to a total decline of 2.2% over the past three months. This translates to an average reduction of $49 in monthly rent since July—an enticing prospect for renters seeking more budget-friendly options.

Focusing on purpose-built and condominium apartments, we see that average asking rents have remained relatively stable, with a slight year-over-year increase of 0.5%, bringing the average to $2,122. Despite the overall decline in rent prices, the rental market in Canada remains dynamic, with significant variations across different regions and property types.

In summary, the year-over-year decline in rent prices in Canada in October 2021 marks a significant shift in the rental landscape, especially in larger cities. While smaller markets continue to see robust rent growth, the recent decline provides some relief to renters seeking more affordable options.