Rent prices in Canada dropped to under $2,100: report

Average asking rents across Canada fell year-over-year for the fifth straight month in February to $2,088. A building with "For Rent" and "For Sale" signs is posted in Montreal, Tuesday, Oct. 1, 2024. THE CANADIAN PRESS/Christinne Muschi

Average asking rents across Canada fell year-over-year for the fifth straight month in February to $2,088.

A monthly report by Rentals.ca and Urbanation, which analyzes listings in the former’s network, says rents declined 4.8 per cent last month, marking the largest decrease since April 2021.

The report says that despite those declines, average rents in Canada are still 5.2 per cent higher than two years earlier and 16.9 per cent higher than pre-pandemic levels.

Urbanation president Shaun Hildebrand says asking rents are softening as supply outweighs demand, with record high apartment completions coming at the same time that population growth has slowed and the economy faces heightened risks due to a trade war with the U.S.

The report says purpose-built apartment asking rents declined 1.9 per cent from a year ago to an average of $2,070, while asking rents for condominium apartments fell 7.6 per cent to a 26-month low of $2,192.

Ontario recorded the steepest rent declines, with apartment rents falling 4.2 per cent to an average of $2,329 in February, followed by B.C.‘s one per cent decrease to $2,457.