Canada Housing Market

In November 2024, Canada’s residential rental market experienced a notable decline, with asking rents falling to a 15-month low of $2,139. This marks a 1.6% decrease compared to the previous year, following a 1.2% drop in October. Despite this decline, rents in Canada are still higher than two or three years ago, reflecting long-term growth trends that have continued post-pandemic.

Rental Price Declines Across Canada

The rental market across Canada showed a general decline, with several areas, particularly in Ontario and British Columbia, experiencing significant decreases. The national average asking rent dropped by 1.6% year-over-year in November 2024. One-bedroom apartments saw a slight decrease of 1.2% annually, while two-bedroom units experienced a 1.0% drop. Interestingly, rents for studios and three-bedroom apartments rose annually by 5.0% and 5.1%, respectively.

Table above from Rents in Canada Decline to 15-Month Low

Rent Trends in Major Canadian Cities

Vancouver, BC continues to be one of the most expensive rental markets, with asking rents for a one-bedroom apartment falling 11.6% year-over-year to $2,534. Two-bedroom apartments also saw a decrease of 11.0%. The city’s rental market has been under pressure for the past several months, with rents continuing to trend downward.

Toronto, ON followed a similar pattern, with one-bedroom rents dropping 8.5% and two-bedroom rents falling 10.4% year-over-year. The overall market in Toronto showed a slight decrease of 0.3% for one-bedroom units, while two-bedroom units remained stable month-to-month.

Rent Declines Across Ontario

Ontario’s rental market saw a significant slowdown in growth. Cities like Brampton, ON recorded a slight rise in rents for both one-bedroom and two-bedroom apartments, but overall, the province experienced rent declines across most cities. Mississauga saw a 1.2% drop in one-bedroom rents, while Barrie experienced an increase of 8.9% year-over-year in one-bedroom units.

However, Ottawa, ON and Guelph, ON continued to see modest rent increases despite the overall decline in the province. The average asking rent in Ottawa for one-bedroom apartments was $2,016, marking a 4.5% decrease from the previous year. Conversely, Waterloo saw a 26.1% surge in rents for one-bedroom units, indicating a strong demand despite a broader market slowdown.

Rent Growth in Smaller Markets and Provinces

In provinces like Saskatchewan, Manitoba, and Alberta, rents showed strong growth. Saskatoon, SK recorded a significant increase of 16.1% in one-bedroom apartments, while Medicine Hat, AB saw 11.7% growth. Edmonton, AB also recorded a notable 5.7% increase in rents, contributing to a tightening rental market.

On the other hand, Quebec and Atlantic Canada saw more moderate changes in rent prices, with Halifax, NS and Gatineau, QC showing slight rent increases of 3.0% and 0.7% year-over-year, respectively.

Shared Accommodation Market

The shared accommodation market also experienced notable changes, with rental prices rising by 3.9% year-over-year, reaching an average of $997 nationally. This increase was most significant in B.C., where shared accommodation rents rose by 4.7%. In Ontario, rents for shared accommodations grew by 3.8%, reaching an average of $1,108. Notably, Ottawa saw a 6.4% rise in shared accommodation rents, largely driven by an increase in available bedrooms in newly constructed townhouses.

Provincial Overview: Rental Prices by Region

• British Columbia saw a decline in overall rents of 2%, with a particularly steep drop in one-bedroom and two-bedroom apartments.
• Ontario posted a 6% decrease in overall rental prices, continuing a trend seen in the past months.
• Quebec rents remained stable overall with minor decreases in some areas.
• Saskatchewan recorded the highest growth, with rents rising by 17.6%, especially in cities like Regina and Saskatoon.

Conclusion

While Canada’s rental market has shown some signs of decline, with overall rents down in many of the largest cities, certain regions such as Saskatchewan and Alberta have experienced growth. Ontario’s rental market, particularly in cities like Toronto and Vancouver, continues to face challenges, with rental prices declining but still higher than in previous years. For prospective tenants and landlords, understanding these trends can provide valuable insights for navigating the current rental market.

Citations:

• Rentals.ca & Urbanation Rent Report December 2024
• Urbanation Inc.
• Rentals.ca Network Data