Canadian Rent Growth Shows Signs of Moderation Amidst Shifting Market Dynamics

Average asking rents for all property types in Canada increased by 8.8% in March 2024, reaching $2,181 according to Rentals.ca and Urbanation’s latest National Rent Report. (File Photo: Maria Ziegler/Unsplash)

Toronto, Canada, April 2024 – Average asking rents for all property types in Canada increased 8.8% in March, reaching $2,181 according to Rentals.ca and Urbanation’s latest National Rent Report. While still showing substantial growth, this indicates some moderation from the 10.5% annual increase recorded in February. Moreover, rents saw a 0.6% month-over-month decrease in March, which can be partly attributed to seasonal factors and a recent slowdown in rental demand in Canada’s most expensive markets.

Since the onset of the pandemic in March 2020, average asking rents in Canada have risen by a total of 21%, equivalent to an average annual increase of just over 5% during the latest four-year period.
“The March data showed early signs of rent increases easing at the national level, weighed down by recent declines in key markets in Vancouver and Toronto,” said Shaun Hildebrand, President of Urbanation. “As population growth slows with caps on non-permanent residents and supply increases as rental completions continue to rise, rent growth should continue to moderate towards more sustainable levels.”

Purpose-built rental apartments saw a 12.7% year-over-year increase, averaging $2,117 in March. In contrast, condominium rental apartments experienced a slower growth rate, with a 3.9% annual increase, reaching an average of $2,321. This divergence in growth rates can be attributed to factors such as record-high condominium completions in certain markets.
Regional disparities in rent trends were notable in March. While British Columbia and Ontario witnessed declines in average asking rents, Alberta maintained its position as the province with the fastest-growing rents, experiencing an 18.3% annual increase. Edmonton once again showed the strongest rent growth amongst Canada’s largest cities, however asking rents for apartments were 27% lower than in Calgary. Vancouver in particular saw rents fall below $3,000 for the first time since July 2022.

Saskatchewan is emerging as a close contender for rent growth leadership, with average asking rents for apartments rising by 18.2% annually. Despite this growth, rents in Saskatchewan remain the lowest in Canada, averaging $1,297 in March.
In smaller markets, the fastest-rising apartment rents over the past year continued to be led by Pointe-Claire in Quebec (+31.0%) and Lloydminster in Alberta (+27.2%). Additionally, asking rents for shared accommodations continued to rise, with the average remaining above $1,000 for the fourth consecutive month.

The National Rent Report charts and analyzes monthly, quarterly and annual rates and trends in the rental market on national, provincial, and municipal levels across all listings on the Rentals.ca Network for Canada. The data from the digital rental platform Rentfaster.ca is incorporated into this report.

Rentals.ca Network data is analyzed and the report is written by Urbanation, a Toronto-based real estate research firm providing in-depth market analysis and consulting services since 1981.

*The data includes single-detached homes, semi-detached homes, townhouses, condominium apartments, rental apartments and basement apartments (outlier listings are removed, as are single-room rentals.)