Common asking rents declined nationally on a year-over-year foundation for the primary time in additional than three years in October, mentioned a report out Thursday.
The report from Leases.ca and Urbanation discovered common asking rents throughout Canada sat at $2,152 in October, down 1.2 per cent from the identical month in 2023 — the primary nationwide lower since July 2021.
The decline is principally concentrated in Canada’s main city centres, with cities like Toronto, Vancouver, Calgary, and Montreal seeing lease decreases.
Urbanation president Shaun Hildebrand mentioned it’s uncommon for rents to say no year-over-year on the nationwide stage.
“That is taking place as the important thing drivers of lease development in recent times — a strengthening financial system, rapidly rising inhabitants, and worsening homeownership affordability — are starting to reverse,” mentioned Hildebrand.
“Because of this, we are able to seemingly anticipate this pattern for rents to proceed within the near-term, notably as house completions stay at file highs.”
B.C. and Ontario recorded essentially the most important annual lease decreases among the many provinces, with the previous seeing common asking rents for flats down 3.4 per cent to $2,549 and the latter recording a 5.7 per cent drop to $2,350.
Rents rose 17.1 per cent in Saskatchewan, which remained the fastest-growing province within the nation by way of asking value, after seeing 23.5 per cent annual development in September.
By metropolis, Toronto recorded the most important annual decline in asking rents for flats in October, at 9.2 per cent, to succeed in a median of $2,642. Vancouver noticed an 8.4 per cent year-over-year lease decline to a median of $2,945, whereas Calgary house rents fell 4.7 per cent to $1,995.
In Montreal, common rents had been down 2.9 per cent at $1,987. Ottawa house rents held regular with a 0.4 per cent annual enhance to succeed in $2,207.
Nevertheless, Edmonton led lease development in Canada’s largest markets as house rents rose 8.4 per cent yearly to a median of $1,584.
Based mostly on the report, the common asking lease for a one-bedroom unit in Canada was $1,923 in October, down 0.8 per cent from a yr in the past. The common asking value for a two-bedroom unit was $2,308, down 0.2 per cent.
Total, asking rents for purpose-built rental flats in October rose 1.7 per cent in contrast with a yr earlier to succeed in a median of $2,100.
In the meantime, condominium house rents, which averaged $2,265, had been down 3.8 per cent.
This report by The Canadian Press was first printed Nov. 7, 2024.
