Hitting a 17-month low of $2,109, the average asking rents for all residential property types in Canada dropped 3.2 per cent in 2024, according to the latest data from Rentals.ca and Urbanation. The decline follows rent growth of 8.6 per cent in 2023 and 12.1 per cent in 2022, making this the first annual rent decrease since the COVID-19 pandemic.
Despite the recent drop, rents have remained up over the past five years, by an average of 3.15 per cent annually.
“The rental market softened across most parts of the country last year following record-breaking growth in 2022 and 2023 and amid multi-decade highs for apartment completions, slowing population inflows, and a weakening economy,” said Shaun Hildebrand, President of Urbanation. “Current trends suggest rents may experience further decreases in 2025, which so far have been focused on secondary market units. However, any rent declines should be temporary and remain minimal mostly due to a long-term undersupply of rental units in the country, with rents set to accelerate in the coming years as the current slowdown in construction works to restrict supply.”
Key data highlights:
- Purpose-built rentals remained stable, with a slight 0.3% decline in average rents to $2,070, while townhouse and house rentals experienced the steepest drop, falling 7.4% to $2,181.
- Studios were the only unit type to see rent growth, rising 1.7% to $1,591. Rents for one- and two-bedroom units declined 1.1% and 0.3%, respectively
Provincial trends:
- Rents in Ontario experienced the steepest provincial decline, down 4.7% annually to $2,332, driven by decreases in one- and two-bedroom units.
- BC apartment rents fell slightly by 0.5% to $2,487, with larger declines in smaller units such as studios (-2.3%).
- Quebec City became the fastest-growing rental market, with average rents increasing 14.9% year-over-year in December.
- Rent growth in Alberta slowed to 1.6% annually, following a 15.6% increase in 2023, with average rents reaching $1,718 in December.
Rents in major markets:
- Rents fell 7.1% in Toronto to $2,632, reversing the 2.1% increase recorded in 2023.
- Rents in Vancouver dropped 5.8% to $2,882, maintaining its position as Canada’s most expensive market.
- Calgary posted the steepest decline among major markets, down 7.2% to $1,921.
- Rents in Montreal remained relatively stable, declining 1.1% to $1,998.
- Edmonton bucked the trend with rents rising 2.7% to $1,506.
Shared accommodation trends
The average asking rent for shared accommodations decreased 1.9% annually to $986. Toronto saw the largest decline, with shared rents dropping 9.0% to $1,194, while Vancouver and Ottawa saw increases of 4.0% and 4.9%, respectively.
For the full National Rent Report, visit: Rents in Canada Decline to 17-Month Low
