According to a recent report, the average rental prices in Canada experienced a decrease in August compared to the previous year, marking 11 consecutive months of declines.
The report by Rentals.ca and Urbanation revealed that the average rental rate across the country was $2,137 in August, reflecting a 2.3% drop from the same period last year. However, this figure still showed a 1% increase from 2023.
The decline in rents has been attributed to various factors, including the reduction in immigration rates by the federal government, which has led to a slowdown in population growth. Additionally, a surge in condo completions entering the market has contributed to the downward trend in rental prices.
Specifically, the report indicated that condo rents saw a 3.7% decrease in August compared to the previous year, while purpose-built rental rates experienced a 0.4% decline. House and townhouse rental rates also dropped by 6% from the previous year.
Though rental prices in Canada decreased significantly during the peak of the pandemic, there was a gradual increase starting in the summer of 2021. The average rent rose from under $1,700 a month during the pandemic to approximately $2,200 last year.
Among major cities, Vancouver and Calgary witnessed some of the most substantial drops in rental rates over the past year, with declines of 9.3% and 9.5% in August, respectively, compared to the previous year. Toronto also experienced a decrease of 3.3% in rental prices during the same period.