Canada’s Average Rent Prices for January Revealed
In January, Canada experienced a notable decrease in average rent prices, marking a significant trend in the rental market. According to a report from Rentals.ca and Urbanation, asking rents fell by 2% year-over-year, settling at an average of $2,057. This decline represents the 16th consecutive month of annual decreases and the lowest average rent recorded in over two years.
Current Rental Market Overview
As of January, the average asking rent is 6.3% lower than two years ago, although it remains 12.9% higher than pre-pandemic levels. The improvement in affordability has been a pivotal development, with the average rent-to-income ratio slipping below 30% for the first time in six years.
Factors Influencing Rent Prices
Shaun Hildebrand, president of Urbanation, noted that increased supply is a crucial factor in enhancing affordability. He stated, “This should help draw more renters into the market this year, even as the population growth slows.”
Another aspect contributing to the decline in average rent is the shrinking size of rental units. The average listing size decreased from 885 square feet last year to 857 square feet in January.
Rent Trends by Unit Type
- Asking rents for condo units decreased by 5.7% year-over-year, averaging $2,093.
- House and townhouse rents fell by 3.1%, landing at $2,078.
- Purpose-built unit rents decreased by 1% year-over-year, averaging $2,049.
- Interestingly, three-bedroom rental prices rose by 1.1%, reaching an average of $2,506.
- Within the purpose-built segment, three-bedroom prices increased by 3.9%, averaging $2,756.
Provincial Rent Trends
The data reveals a regional breakdown of average apartment rent decreases:
| Province | Average Rent Change |
|---|---|
| B.C. | −4.7% |
| Alberta | −4.3% |
| Ontario | −3.3% |
| Quebec | −2.6% |
Major Cities Rental Changes
All six of Canada’s largest rental markets recorded annual declines in rental prices last month:
- Vancouver: −9.2% (average rent: $2,630)
- Calgary: −5.7% (average rent: $1,815)
- Toronto: −4.6% (average rent: $2,495)
- Ottawa: −4.8%
- Montreal: −3.7%
- Edmonton: −2.6%
This comprehensive analysis highlights the shifting landscape of Canada’s rental market, emphasizing both declining rent prices and improved affordability for renters across various regions.
