Canadian rents increase by 7.0 per cent in June, marking slowest growth in over a year: Report
Average asking rents for all residential property types in Canada increased by 7.0 per cent year-over-year in June, reaching an average of $2,185 per month according to Rentals.ca and Urbanation’s latest National Rent Report.
According to the report, this represents the slowest annual rate of growth in 13 months. On a month-over-month basis, average asking rents decreased by 0.8 per cent, which marks the largest decline since early 2021 during the pandemic, and reversing the usual seasonal trend of rising rents around this time of year.
“Rents at the national level are clearly levelling out,” said Shaun Hildebrand, president of Urbanation. “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.”
Rents for purpose-built and condominium rental apartments fell by 1.0 per cent in June from the previous month, averaging $2,146, noted the report.
According to the report, year-over-year, apartment rents increased by 9.0 per cent, driven by an 11.0 per cent rise in purpose-built rental rates, which now average $2,121. Condominium apartment rents saw a 2.6 per cent increase, averaging $2,320. Studio rents for condominiums dropped by 5.1 per cent annually to $1,823, while purpose-built studio rents surged by 14.6 per cent to $1,613.
The report noted that Toronto rents fell to a 22-month low, with average rents for purpose-built and condominium units declining by 2.5 per cent monthly and 3.5 per cent annually to $2,715.
Vancouver saw a 1.1 per cent monthly increase but a 7.8 per cent annual decrease, according to the report, bringing the average rent to $3,042. Edmonton experienced the highest rent growth among major cities, with a 14.3 per cent annual increase to $1,564, while Calgary’s rents grew by 4.2 per cent to $2,092.
In Montreal, rents grew by 4.3 per cent and Ottawa saw a slight increase of 1.5 per cent. A majority of provinces saw year-over-year rent increases, with the exception of Ontario, where rents declined. In Ontario, rents for purpose-built and condominium apartments decreased by 1.7 per cent from May to June and fell by 1.3 per cent annually.
Quebec also saw a monthly decrease of 1.0 per cent, the report noted, but rents were up 5.1 per cent year-over-year, averaging $1,979. Saskatchewan led with a 22.1 per cent annual increase in rents, though they remain below the national average at $1,339.
Shared accommodation listings recorded a 7.5 per cent annual increase in asking rent across four provinces, averaging $989, according to the report.
The report also noted that roommate rents in Toronto fell for the fourth consecutive month, down 1.7 per cent monthly and 4.0 per cent annually.
According to the report, Ottawa also saw a decline, with roommate rents decreasing by 1.0 per cent year-over-year. Calgary led the growth in roommate rents with an 8.8 per cent annual increase, while Vancouver remained the most expensive city for shared accommodations at $1,471, up 1.2 per cent annually.