Renters across Ontario could continue to see some relief this summer as a growing housing supply and slower population growth combine to ease pressure on rental prices.
According to the latest National Rent Report from Rentals.ca and Urbanation, average asking rents across Canada fell 4.7 per cent in May compared to the same month last year, marking the 20th consecutive month of annual rent declines.
The average asking rent for all residential properties in Canada was $2,029 in May, approximately $100 lower than a year earlier.
Ontario was among the provinces experiencing the largest declines, with apartment rents down five per cent year-over-year. Similar trends were reported in British Columbia and Alberta.
Researchers say several factors are contributing to the softer market, including a weaker economic backdrop, slowing population growth and a record number of newly completed apartment units becoming available.
“The Canadian rental market is heading into the peak summer season under a weak economic backdrop, a decreasing population, and record apartment completions,” said Shaun Hildebrand, president of Urbanation.
He said those factors are helping keep rent increases below what would normally be expected during the busy spring and summer rental season.
Despite the annual decline, rents edged slightly higher in May compared to April. However, the increase was much smaller than the typical seasonal gains seen over the past five years.
The report found purpose-built rental apartments remained the strongest segment of the market, while condominium and townhouse rentals experienced larger declines.
For communities such as Northumberland, where housing affordability remains a significant concern, the national trend may offer some encouragement for renters entering the market or looking to move this summer.
Industry analysts say increased housing supply appears to be giving renters more options after several years of rapid rent increases across Ontario and much of Canada.
(Written by: Joseph Goden)
