May decline represents the eighth consecutive annual decrease
Rental prices across Canada remained largely unchanged from April to May, but year-over-year figures reveal a continued easing trend in asking rents.
Financial Post reported that new data from Rentals.ca and Urbanation shows that the average asking rent in May stood at $2,129, down 3.3% from the same month in 2023. This decline represents the eighth consecutive annual decrease.
The minimal 0.1% rise from April indicates a period of relative stability following months of annual declines. Purpose-built rentals averaged $2,117 in May, representing a 2% decrease compared to the previous year. Condominium apartments had a steeper decline, with average asking rents dropping 3.6% to $2,192.
According to Urbanation president Shaun Hildebrand, several factors contributed to the ongoing rental adjustments. Increased availability from newly completed apartment units, a slowing pace of population growth, and economic uncertainty have combined to ease rental demand pressures in some areas.
Despite the annual decrease, current rent levels remain higher than pre-2022 figures. The national average is 5.7% above rates from two years ago and 12.6% higher compared to three years ago.
Regionally, Ontario recorded the sharpest decline among the provinces in May. Asking rents there fell 3.6% year over year, averaging $2,335. British Columbia followed with a 2.6% decrease to $2,462, while Alberta and Quebec reported 2.4% and 1.8% drops, with average rents at $1,745 and $1,964, respectively.
In an interview with Financial Post, Royal LePage CEO Phil Soper addressed the ongoing housing affordability issue in large urban centres. In Vancouver, he said, about 50% of residents are spending a substantial portion of their income on rent or housing loans. He pointed out that while home prices in many Canadian markets declined in 2023, rental costs continued to climb, rising 8% over the year. He added that the country’s housing shortage is affecting both renters and buyers alike.
The latest figures suggest that while rental prices are easing compared with 2024, affordability remains a challenge in several regions as housing supply and demand continue to shift.
Is the current decline in asking rents making a difference in your city? How are rent prices influencing your housing choices? Share your thoughts in the comments.
