Rental Market Update

Canadian Rental Market Ends 2024 with Decline in Asking Rents

The average asking rents for all residential property types in Canada ended 2024 with a notable 3.2% decline compared to the end of 2023, reaching a 17-month low of $2,109 in December. This decrease follows an 8.6% rent increase in 2023 and a significant 12.1% rise in 2022. It marks the first annual rent decline since 2020, during the COVID-19 pandemic, when rents fell by 5.4%. Despite the recent dip, rents have grown by 16.8% over the past five years, averaging an annual increase of 3.15%.

When looking at specific property types, houses and townhouses experienced the most significant drop in asking rents for 2024, falling by 7.4% year-over-year in December to an average of $2,181. Condominium rents declined by 5.2%, averaging $2,219, while purpose-built rental units saw a marginal decrease of just 0.3% in average asking rents, settling at $2,070. This modest decline in purpose-built rents stands out, as it follows a notable annual increase of 12.8% in 2023.

These shifts reflect a cooling rental market after years of rapid growth, offering renters some relief while signaling a more balanced landscape for landlords and tenants alike.