As of this month, national average asking rents in Canada have reached $2,121. This is the biggest drop in the rental market’s history. That’s one takeaway from Apartment List’s recently released monthly national report, which found the national average asking rent decreased 3.6 percent year-over-year. This drop marks the 10th month in a row of year-over-year declines, reflecting an extended period of rental market softening.
Recent data has indicated that rents have significantly fallen. They remain a bit above where they were two or three years ago. Average asking rents have increased by just two percent from two years ago. They are 11 percent above where they were three years ago. This continuing trend points to a changing current in the Canadian rental market.
Provincial Insights on Rental Trends
Meanwhile, in Alberta, average asking rent is $1,738 and is down 3.9 percent year-over-year. In Manitoba, renters face an average asking rent of $1,617. This amount is down by 0.9 percent from last year. These numbers are reflective of the trend across the country, with some provinces seeing steeper decreases than others.
Saskatchewan has had an annual decline of four percent, with average asking rents at $1,384. This increase marks a significant departure from the general trend in all other provinces, where price decreases are accelerating.
“Canada’s rental market is experiencing a prolonged softening phase, with price declines accelerating across most provinces and unit types.” – David Aizikov
Changes in Apartment Types
The report isn’t only a deeper look into affordability, but it highlights certain apartment types across Canada. Asking rents in purpose-built apartments are down 1.7 percent on a year-over-year basis, landing at $2,095. In comparison, condominium apartment asking rents dropped 5.7 percent to $2,202.
Neither have houses or townhomes for that matter. In exchange, their rents dropped by an average of 8.2 percent ($2,170), leaving them better off, plus at no risk of eviction. These kinds of fluctuations show just how far down economic conditions can ripple through the rental spectrum.
“With the seasonal peak now behind us, we expect continued downward pressure on rents heading into the fall.” – David Aizikov
