Which cities are seeing the biggest drops—and increases—in rent costs?
The average asking rent across Canada fell to $2,109 in December, marking a 17-month low, according to a report by Rentals.ca and Urbanation. The 3.2% year-over-year decline represents a significant shift after consecutive years of sharp increases, including an 8.6% rise in 2023 and a 12.1% jump in 2022.
Shaun Hildebrand, president of Urbanation, has attributed the decline to record-high apartment completions, slowing population growth, and a weakening economy, The Canadian Press noted. December marked the fifth consecutive month of rent decreases, with asking rents dropping 3.8% between September and December alone. Despite the recent downward trend, rents remain 16.8% higher than five years ago, reflecting sustained market pressure over the long term.
Ontario and British Columbia, Canada’s priciest rental provinces, both experienced declines. Ontario saw a 4.7% drop, lowering the average asking rent to $2,332, while British Columbia recorded a smaller 0.5% decrease, leaving the average at $2,487. Manitoba led all provinces in annual rent growth, with a 5% increase to $1,618.
In major markets, Vancouver’s average asking rent fell 6% to $2,882, and Toronto experienced a 7% drop to $2,632. Calgary, which had been Canada’s fastest-growing rental market in 2023, saw the sharpest decline among major cities, with rents falling 7.2% to $1,921. Meanwhile, Quebec City became the fastest-growing market in 2024, with rents surging nearly 15%.
Different property types experienced varied impacts. Houses and townhouses faced the largest drop, with a 7.4% decline to $2,181, while condominium rents fell 5.2% to $2,219. Purpose-built rentals showed resilience, with only a 0.3% decline. Studios were the sole property type to experience rent increases, rising 1.7% to $1,591.
Certain cities bucked the downward trend. Halifax saw a 10.3% rise in one-bedroom rents and an 11.2% increase for two-bedroom units, reflecting strong demand. Additionally, three-bedroom apartments in British Columbia saw a 6.3% rent increase, while similar units in Ontario fell 4.8%.
As the rental market adjusts to changing economic and demographic dynamics, experts anticipate continued fluctuations into 2025.
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