The latest National Rent Report by Rentals.ca and Urbanation has revealed that the average asking rents for all property types across Canada had their slowest rate of growth since October 2021. The report attributed this slowdown to the decline in international student enrollments. In September, rents in Canada averaged $2,193 per month. The impact of the drop in foreign student enrollments was particularly felt in British Columbia and Ontario, where rents are increasing at the slowest pace in nearly three years. Despite the slowdown, rents are still significantly higher than they were two and three years ago, with a 13.4% increase over the past two years and a 25.2% increase over the past three years.
Condominium rents across Canada declined by 1.7% in September, averaging $2,296. Vancouver saw a significant drop in average rent by 13.6% to $3,232, while Toronto experienced a 7.7% decrease to $2,745. Calgary also saw a 3.4% drop in condo rents to $2,060. On the other hand, purpose-built apartments saw a 5.4% annual rent increase, reaching an average of $2,138. Studio units showed the strongest growth at 11.1%. Ontario and British Columbia recorded the most significant annual rent declines, with average asking rents for purpose-built and condominium apartments decreasing by 4.3% to $2,380 in Ontario and by 3.2% to $2,570 in British Columbia.
Saskatchewan experienced the fastest-growing increase in rents, with a surge of 23.5%, making it the province with the highest rent growth in the country. However, some of Canada’s largest cities saw declines in apartment rents. Vancouver experienced its 10th consecutive month of rent declines, down by 9.5% compared to the previous year, with an average rent of $3,023. Toronto also saw an 8.1% decrease, bringing the average rent down to $2,668. Calgary and Montreal both posted a 2% annual rent decline, while Ottawa saw a slight increase of 0.8% to $2,220. Additionally, shared accommodation rents went up by 6.9% annually, averaging $1,009 in September.
Overall, the impact of falling international student enrollments is having a significant effect on the rental market in Canada, particularly in provinces like British Columbia and Ontario. The decline in rents for condos in major cities like Vancouver and Toronto reflects the overall trend of slowing rent growth across the country. However, some provinces like Saskatchewan are experiencing substantial rent increases, indicating a shift in demand to less expensive parts of the country. It will be essential for policymakers and stakeholders in the rental market to monitor these trends closely and adapt to the changing landscape to ensure a balanced and sustainable rental market for both tenants and landlords.
