Canadian rents drop for 24th month as oversupply pressures market

Rent prices in Canada have fallen for 24 consecutive months, marking a two-year decline that analysts say is the longest recent downturn. The average asking rent for all residential units was $2,034 in September, a 4.2% drop from the same month a year ago and the lowest September level since 2022. After peaking at $2,202 in May 2024 and $2,142 in September 2024, rents are now 7.3% below September 2024 and 9.2% below the May 2024 high.

Shaun Hildebrand of Urbanation attributes the slide to oversupply in key markets like Toronto and Vancouver. Condo rents fell to $2,052, a 7.8% decline, with studio condos down 9.6%; houses and townhomes dropped 7.4% to $2,016, while purpose-built rentals were the most resilient, slipping 2.7% to $2,036.