Average Rent Sees First Annual Decline in Years but Remains Above Pre-Pandemic Levels

After reaching an all-time high in May, the average rent in Canada fell in October to its lowest level in 12 months, marking the first year-on-year decline since the pandemic, according to a new report.
Average prices, however, remain at their highest levels since they began rising three years ago.
“Rent growth in Canada has been consistently slowing since the summer, with the latest decline representing a sharp reversal from the 9.3 percent annual increase posted in May,” said the report. “It was the first year-over-year decline in rents since July 2021 during the COVID-19 pandemic.”
The decline was mainly seen in larger cities such as Vancouver, Toronto, Calgary, and Montreal, while in small and mid-sized cities, particularly within British Columbia and Ontario, rent continued to rise.
Small and medium-sized cities recorded some of the largest increases in average rent, led by Lloydminster, Alta.–Canada’s most affordable rental market–which saw a 24.3 percent increase to an average of $1,176. Pointe-Claire, Que., had the second largest increase at 23.1 percent, bringing its average rent in October to $2,269.
The top five smaller markets with rent increases were rounded out by Saskatoon at almost 19 percent, and Lethbridge, Alta., and Gatineau, Que., which both recorded an increase of 13 percent.
Among Canada’s largest rental markets, Edmonton recorded the highest annual rental growth, up 8.4 percent in October to an average of $1,584, “while still maintaining a large affordability advantage over other big cities,” the report noted.
The top 10 were completed by Mississauga, Ont. ($2,308), Oakville, Ont. ($2,304), North York, Ont. ($2,233), Etobicoke, Ont. ($2,220), Burlington, Ont. ($2,191), Victoria ($2,151), and Barrie, Ont. ($2,080), all for a 1-bedroom rental.
Fort McMurray, Alta., ranked at the bottom of the list, with a one-bedroom unit going for $1,218 on average. Next from the bottom was Saskatoon, where a similar unit averaged $1,293.  Regina and Winnipeg followed, with one-bedroom units priced at $1,296 and $1,382 respectively.