Global News – In recent months, rent growth in Canada has generally stalled, with notable declines in some of the country’s most expensive cities. The latest rent report from Urbanation and Rentals.ca for June highlights a mixed landscape across the country, where some regions see falling rents while others continue to experience rising prices.
National Overview and Trends
The report indicates a 0.8% drop in average asking rents across all property types from May, bringing the national average to $2,185. This decline marks the largest month-to-month decrease since early 2021, during the COVID-19 pandemic. Typically, rents tend to rise during this season, making this a significant deviation from the norm.
Key insights from the report include:
- Annual Increase: June saw a 7% annual increase in rents, the slowest growth rate in the past 13 months. ◦ Recent Cooling: Over the past three months, rents have been “effectively flat,” rising only 0.2% nationally between March and June.
City-Specific Dynamics
Zooming in on specific cities reveals varied trends:
- Toronto: Average asking rents for condos and purpose-built rental apartments fell 3%, reaching a 22-month low of $2,715. This is part of a broader trend of annual declines over the past five months.
- Vancouver: Despite a 1.1% monthly increase, average rents remained above $3,000 but saw an 8% annual decrease, continuing a seven-month trend of year-over-year declines.
- Montreal: Rents increased by 4.3% annually in June, slightly surpassing Calgary’s 4.2% growth, with both cities reporting average rents just over $2,000.
Provincial and Regional Variations
On a provincial level, both Ontario and Quebec experienced month-to-month decreases in rent, while British Columbia saw flat growth. However, the story differs significantly in the Prairies and Atlantic Canada:
- Edmonton: Led apartment rent growth among Canada’s six largest cities for six consecutive months, with a 14.3% increase to $1,564 in June, although it remains among the lowest in the country.
- Regina: Saw a 22% annual increase, the highest among Canadian cities, followed by Quebec City at 19% and Saskatoon at 17%. Average rents in these cities range between $1,371 and $1,640.
Expert Insights and Future Outlook
Experts suggest that the rampant rental growth, especially in Canada’s most expensive markets, may stabilize soon. Desjardins economist Randall Bartlett notes that as high rents in cities like Toronto and Vancouver drive residents to more affordable areas like Alberta, competition in these markets increases, pushing rents higher.
Looking forward, federal initiatives to ease the influx of non-permanent residents and efforts to expand the rental supply could alleviate some of the pressure on rents. These measures aim to balance the demand and supply dynamics, potentially stabilizing rental prices across the country.
