The average asking rent for residential properties in Canada fell 4.7 per cent year-over-year in May to $2,029, marking the 20th straight month of annual declines, according to Rentals.ca and Urbanation. Overall, rents were about $100 lower than a year ago and 7.9 per cent below levels from two years ago, though they remain 0.7 per cent higher compared to three years ago.
“The Canadian rental market is heading into the peak summer season under a weak economic backdrop, a decreasing population, and record apartment completions, which are all working together to keep rent increases softer than what is typical for this time of year,” said Shaun Hildebrand, President at Urbanation. “This should offer continued relief for renters after years of outsized rent inflation.”
Despite the continued annual decline, rents edged up 0.1 per cent month-over-month in May. However, the increase was well below the average seasonal gain of 1.3 per cent recorded during the month of May over the previous five years, pointing to a slower-than-normal spring rental market. Since reaching a peak of $2,202 in May 2024, average asking rents have fallen 7.9 per cent.
Purpose-built rentals remained the most resilient segment of the market, with asking rents declining 3.4 per cent annually to an average of $2,031. Condo rents fell 6.8 per cent year-over-year to $2,076, while houses and townhomes declined 7.7 per cent to $2,004. Three-bedroom purpose-built rents remained relatively stable, decreasing only 0.5 per cent to $2,729, while studio condo rents recorded the steepest decline among major unit types, falling 8.9 per cent to $1,605.
At the provincial level, annual apartment rent declines were concentrated in Canada’s largest provinces, led by British Columbia (-5.4%), Ontario (-5.0%), and Alberta (-4.7 %). Nova Scotia stood out as the most expensive province for purpose-built and condominium apartments at an average of $2,343, overtaking British Columbia. Meanwhile, Saskatchewan continued to lead long-term rent growth, with apartment rents increasing 26.2 per cent over the past three years.
Apartment rents declined across all six of Canada’s largest markets in May, led by Calgary (-5.1%), while Montreal recorded the smallest annual decrease (-0.2%). Vancouver rents fell for the 30th consecutive month on an annual basis and were 5.6 per cent lower than four years ago. Toronto apartment rents declined for the 28th consecutive month, although they remained 3.1 per cent above levels recorded in May 2022.
Several suburban markets surrounding Canada’s largest cities continued to experience some of the steepest rent declines nationally, including Richmond Hill (-14.3%), Longueil (-13.3%), Markham (-12.9%), Brossard (-11.0%), and Scarborough (-10.6%).
The average asking rent for shared accommodations across British Columbia, Alberta, Ontario, and Quebec declined 4.8 per cent annually in May to $900. Vancouver recorded the largest decline among major markets, with shared accommodation rents falling 15.7 per cent year-over-year to $1,115.
