Canada’s rental market continues to cool, with the average asking rent falling below $2,100 for the first time in nearly 18 months.
According to the National Rent Report from Rentals.ca and Urbanation, the national average dropped 3.1% year-over-year in November to $2,074, marking the 14th consecutive month of annual declines.
Ontario saw one of the steepest provincial drops, with average apartment rents falling 3.5%. Toronto’s rents decreased 5% to $2,508, the lowest level since May 2022. One-bedroom units averaged $1,811, two-bedroom units $2,179, and three-bedroom purpose-built apartments remained more stable at $2,743. Shaun Hildebrand, President of Urbanation, attributes the trend to flattening population growth, continued economic uncertainty, and a record number of apartments completing construction. “In this environment, rents can be expected to continue trending down over the coming months,” he said.
Across the country, purpose-built rentals declined just 2% annually to $2,060, while condo rentals fell 3.7% to $2,157. Secondary market units experienced the largest drops, down 5.2% to $2,087. Shared accommodations across B.C., Alberta, Ontario, and Quebec averaged $914, the lowest in over two years. Despite the short-term declines, rents remain 3.4% higher than three years ago.
The report covers a broad range of housing types, including single-detached homes, semi-detached homes, townhouses, condominium apartments, and rental apartments, highlighting ongoing shifts in Canada’s housing affordability landscape.
For renters in Ontario, the current trend represents a small period of relief after years of escalating costs.
(Written by: Joseph Goden)
