Average asking rents for residential properties in Canada fell to $2,139 in November, marking a 15-month low, according to the National Rent Report by Rentals.ca and Urbanation. This represents a 1.6 per cent year-over-year drop and a 0.6 per cent decrease compared to October. The decline follows a similar trend from earlier in the fall, with rents down 2.2 per cent over the past three months.

“Overall, the recent decline in rents has been very mild and is allowing affordability to improve following a rapid escalation in rents over the past few years,” said Shaun Hildebrand, President of Urbanation. “Declines so far are mainly focused within the secondary market for condos and houses, mostly in B.C. and Ontario, while purpose-built rents are stable.” 

Despite the drop, rents remain significantly higher than historical levels. They are up 6.7 per cent compared to two years ago and 18.8 per cent from three years ago. Over the past five years, rents have increased at an average annual rate of 3.4 per cent, which according to the report is “generally in line” with long-term trends.

Regional variations highlight market differences

Ontario saw the steepest declines, with average apartment rents dropping 6.4 per cent year-over-year to $2,351. Two-bedroom apartments in the province saw the largest drop, down 7.6 per cent. B.C. also reported a decrease, with rents falling 2.3 per cent annually to $2,524. Quebec saw a marginal decline of 0.4 per cent, bringing the average asking rent to $1,969.

Other  provinces bucked the national trend. Alberta rents rose 3.7 per cent, while Saskatchewan saw a 12.1 per cent jump and Manitoba’s average rent jumped 7.9 per cent. In the Maritimes, rents grew by 5.1 per cent in New Brunswick and 4.4 per cent in Nova Scotia. Newfoundland and Labrador remained relatively stable, with rents declining by only 0.4 per cent.

Declines in Canada’s largest cities 

Rents fell in Canada’s five largest cities. Toronto’s average asking rent dropped 9.4 per cent year-over-year to $2,640, reaching a 28-month low. Vancouver saw an 8.9 per cent decline to $2,888, its lowest point in 30 months. Calgary, Ottawa and Montreal also reported year-over-year decreases of 5.8 per cent, 3 per cent and 2.3 per cent, respectively.