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 of $2,202 per month.
Throughout the summer, CBC News heard from seniors, young people, newcomers and many others about their struggles to afford housing during the rental affordability crisis.
For perspective, when the last annual decline was recorded in July 2021, the average cost of rent was $1,752 per month — $400 less per month than in October 2024.
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 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 released in September that several major cities saw record apartment completions as developers cleared their backlogs. Montreal and Vancouver were an exception.