Renting? Report says Canada is at ‘best levels of affordability’ in 2 years

Average asking rents in September in Canada dropped 3.2 per cent compared to September last year, a new report by Rentals.ca and Urbanation shows.

Rents in Canada have not been this low in two years, a new report by Rentals.ca and Urbanation shows, marking a fresh milestone for Canada’s rental market.

Average asking rents for all residential properties in September in Canada declined by 3.2 per cent compared to September last year, dropping to $2,123 a month and marking the 12th consecutive month of rents declining in Canada.

Compared to September 2023, rents were down 1.2 per cent, marking the first two-year decline since January 2022.

“Renters in many parts of Canada are experiencing the best levels of affordability in two years, with the most expensive markets in Vancouver and Toronto seeing rents at their lowest in nearly four years,” said Shaun Hildebrand, president of Urbanation.

“This is the result of new rental supply outstripping demand, which is unlikely to persist for long as supply from secondary market sources such as condos tightens and demand drivers, such as population growth and employment, stabilize,” he said.

This follows a steady period of rent increases after the COVID-19 pandemic, with 38 consecutive months of rent increases between August 2021 and September 2024.

The report cites “record high apartment completions, population decreases for non-permanent residents, and a weakening job market,” as reasons for dropping rents.

Purpose-built rentals saw a 2.1 per cent decrease with average rents at $2,093 compared to September 2024, while the average condo saw rents go down three per cent to $2,226.