Average asking rents decrease for fifth straight month to $2,088: report

Average asking rents across Canada have fallen for the fifth consecutive month, reaching $2,088 in February. This 4.8 per cent year-over-year decline is the largest since April 2021.

Despite these decreases, average rents remain 5.2 per cent higher than two years ago and 16.9 per cent above pre-pandemic levels.

Urbanation president Shaun Hildebrand attributes the rent decline to an oversupply in the market. He notes that record-high apartment completions coincide with slowed population growth and economic uncertainties, including a trade war with the U.S.

The report indicates that purpose-built apartment rents decreased by 1.9 per cent from the previous year, averaging $2,070. Condominium apartment rents saw a more significant drop of 7.6 per cent, reaching a 26-month low of $2,192.

Ontario experienced the most substantial rent declines, with apartment rents falling 4.2 per cent to an average of $2,329 in February. British Columbia followed with a one per cent decrease, bringing average rents to $2,457.

These trends suggest a shift in the Canadian rental market, with increased supply and economic factors contributing to the ongoing decline in average asking rents.