“A Steepening Decline”: Average Canadian Rent Sinks To 17-Month Low

In December 2024, the average asking rent across Canada fell to $2,109, marking a 3.2% decrease from the same month in the previous year. This decline represents a 17-month low and continues a five-month trend of decreasing rental prices nationwide.

This downturn is notable, especially considering that rents had increased by 8.6% in December 2023 and 12.1% in December 2022. The 2024 decline is the first annual drop since the 5.4% decrease observed during the COVID-19 pandemic in 2020.

Urbanation President Shaun Hildebrand attributes this trend to several factors, including a surge in apartment completions, a slowdown in population growth, and a weakening economy. These elements have collectively contributed to the softening of the rental market.

The decline in rental prices varied across different property types. Units within houses and townhouses experienced a 7.4% decrease, averaging $2,181, while condominium rents fell by 5.2% to $2,219. Purpose-built rentals remained relatively stable, with a slight 0.3% decrease to $2,070.

Regionally, major cities saw significant reductions in average rents. Toronto experienced a 7.1% decrease, bringing the average rent to $2,632. Vancouver's average rent fell by 5.8% to $2,882, and Calgary saw a 7.2% decline to $1,921. Notably, Calgary's average rent is now below Montreal's for the first time in two years.

Despite the recent declines, average rents in Canada have increased by 16.8% over the past five years, averaging an annual growth rate of 3.15%. However, the current trend suggests a cooling rental market as the country moves into 2025.