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Canadian rent price growth slows to lowest level in 13 months

In June, the average rent price in Canada rose 7% year-over-year, marking the slowest growth rate in 13 months.

Canadian rent increases are easing

In June, the average rent price in Canada rose 7% year-over-year, marking the slowest growth rate in 13 months.

The average asking rent was $2,185 last month, down $17 from May, according to the latest monthly report from Rentals.ca. This 0.8% month-over-month decline is the largest decrease since early 2021, reversing the typical seasonal trend of rising rents at this time of year.

While rent price increases may be easing, they’re still up by more than $530, or 32%, since hitting their low of $1,662 in April 2021.

“Rents at the national level are clearly levelling out,” said Shaun Hildebrand, President of Urbanation, which co-released the report.

“At this stage of the market, strong rent increases are mainly limited to inexpensive cities, particularly in the Canadian Prairies, while larger markets dealing with severe affordability issues are seeing rents slow or fall.”

Average asking rent in Canada

Monthly rent decreases limited to Ontario and Quebec

Ontario and Quebec were the only provinces to record month-over-month declines in average rent prices, while rents in British Columbia remained flat. On an annual basis, Ontario was also the only province to see prices decline, falling 1.3% to $2,382.

Meanwhile, rent price growth continued to accelerate in Saskatchewan, leading provincial increases for the third consecutive month. Rents for purpose-built and condominium apartments in Saskatchewan are now up 22.1% year-over-year, though the average rent remains 38% below the national average at $1,339.

Quebec also reported a 1% monthly increase in asking rents and a 5.1% annual increase to $1,979.

Average asking rent by province

At the municipal level, Regina once again led rent price growth, with an annual rise of 22% to $1,393, followed by Saskatoon (+17%).

Markets that reported the largest annual drops in rent prices included Barrie, ON (-9%; $2,218), Hamilton, ON (-7%; $1,940), Guelph, ON (-5%; $2,252) and Windsor, ON (-5%; $1,630).

Here are the average asking rents in key municipalities across the country in June:

Average asking rent in JuneYear-over-year increase
Toronto, ON$2,715-3%
Vancouver, BC$3,042-8%
Montreal, QC$2,013+4%
Calgary, AB$2,092+4%
Ottawa, ON$2,190+3%
Regina, SK$1,393+22%
Winnipeg, MB$1,663+9%
Halifax, NS$2,236+13%
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Last modified: July 10, 2024

Steve Huebl is a graduate of Ryerson University's School of Journalism and has been with Canadian Mortgage Trends and reporting on the mortgage industry since 2009. His past work experience includes The Toronto Star, The Calgary Herald, the Sarnia Observer and Canadian Economic Press. Born and raised in Toronto, he now calls Montreal home.