Rent increases for apartments are dropping across Canada, but not in Saskatchewan

In recent months, rental increases in Canada have started to slow, giving renters in many regions some financial relief. Nationally, the average monthly rent in July was up by just 5.9% compared to the previous year, marking the lowest growth rate in over two years. This slowdown has been influenced by factors such as new condo completions and changing rental demand in larger cities like Toronto and Vancouver, which have even seen slight decreases in their year-over-year rent rates.

However, Saskatchewan is an exception to this trend, leading Canada with the highest increase in rental costs. Rental rates in Saskatchewan, including cities like Saskatoon and Regina, have climbed sharply, with a 22.2% year-over-year increase. The province’s rental market remains under pressure due to limited rental availability, contributing to its high growth rate. Unlike Ontario and British Columbia, where rental prices have eased, Saskatchewan’s tight supply is intensifying the demand, particularly for purpose-built rental units.

The contrast between Saskatchewan and other Canadian provinces underscores a significant regional disparity in rental affordability. While Toronto and Vancouver rental prices have moderated due to increased availability, Saskatchewan faces ongoing challenges with inventory, particularly in mid-sized cities where rental housing construction has been slower. This shortage pushes prices higher, affecting both new renters and those renewing their leases.

Analysts suggest that, without increased construction of affordable rental units in high-demand areas like Saskatchewan, prices are likely to remain high. Government interventions aimed at expanding rental housing and controlling costs, particularly through building incentives, are being encouraged to address these regional gaps and provide relief to renters facing significant price hikes in the province.