Toronto saw a "significant" 9.2 per cent annual decrease in average asking rental prices in October, bringing the average rent to $2,642, according to figures released Thursday by Rentals.ca and Urbanation.
Rentals.ca's latest national rent report said average asking rents for all residential property types in Canada fell by 1.2 per cent year-over-year in October, marking the first annual rent decline since July 2021.
The website said the decline in rent growth is mainly concentrated in Canada’s major urban centres.
“It is a rare occurrence for rents to decline at the national level. This is happening as the key drivers of rent growth in recent years — a strengthening economy, quickly rising population, and worsening homeownership affordability — are beginning to reverse,” said Shaun Hildebrand, president of Urbanation, a Toronto-based real estate research firm.
“As a result, we can likely expect this trend for rents to continue in the near-term, particularly as apartment completions remain at record highs.”
Meanwhile, smaller and more affordable markets continued to experience rent growth in October, emphasizing a shift in demand toward less costly areas, the report suggests.
The national rent report is based on listings from Rentals.ca. Data is analyzed and the report is written by Urbanation.
