Business and Economy
Annual rental prices fell for the 1st time in over three years, but only in big cities
By Jenna Benchetrit, CBC News, RCI
However, rental prices in smaller mid-sized markets were still on the rise, reflecting a spike in demand as Canadians seek housing in less expensive markets. (Pexels Photo)
Average cost of rent is down just $50 a month from June’s record high
Canadian rental prices fell 1.2 per cent in October compared to the same time last year, marking the first time that annual rents have declined since July 2021, according to a new report.
The decline is mostly concentrated in urban centres in Ontario and British Columbia, according to a national rent report released on Thursday by Rentals.ca and real estate data firm Urbanation.
The average cost of rent around the country is now $2,152 per month. That’s down $50 a month from June’s record high (new window) of $2,202 per month.
Throughout the summer, CBC News heard from seniors (new window), young people (new window), newcomers (new window) and many (new window) others (new window) about their struggles to afford housing during the rental affordability crisis (new window).
For perspective, when the last annual decline was recorded (new window) in July 2021, the average cost of rent was $1,752 per month — $400 less per month than in October 2024.
- Where can you afford to rent? Use CBC’s rental interactive (new window) to find out.
Declines in big cities, prices up in smaller markets
Toronto, Montreal, Vancouver and Calgary each saw decreases in October. However, rental prices in smaller mid-sized markets were still on the rise, reflecting a spike in demand (new window) as Canadians seek housing in less expensive markets.
It is a rare occurrence for rents to decline at the national level,
said Urbanation president Shaun Hildebrand in a press release.
This is happening as the key drivers of rent growth in recent years — a strengthening economy, quickly rising population, and worsening homeownership affordability — are beginning to reverse.
He said he expects the trend will continue as more apartment construction is completed.
The Canada Mortgage and Housing Corporation noted in a fall housing supply report (new window) released in September that several major cities saw record apartment completions as developers cleared their backlogs. Montreal and Vancouver were an exception.
This article is republished from RCI.
