The average asking price for rent in Toronto in November dropped to a figure not seen in more than two years, according to a national report from a Canadian rentals website.
Toronto asking prices fell 9.4 per cent year-over-year to an average of $2,640, a 28-month low, according to the statistics from Rentals.ca and Urbanation.
The average asking price for a one-bedroom in the city was $2,374 (down 8.5 per cent compared to November 2023) and a two-bedroom was $3,091 (down 10.4 per cent).
Other large cities saw a similar trend. Vancouver's asking prices dropped 8.9 per cent compared to the same month last year to $2,888 a month, a 30-month low. Calgary, Ottawa, and Montreal also recorded declines.
While there is a drop in prices in the big cities, for the country as a whole, asking prices have fallen just 1.6 per cent compared to November 2023, with average asking prices seeing a only slight 0.6 per cent decline month-over-month.
“Overall, the recent decline in rents has been very mild and is allowing affordability to improve following a rapid escalation in rents over the past few years," said Shaun Hildebrand, president of Urbanation, a Toronto-based real estate research firm that analyzed the rental data.
"Declines so far are mainly focused within the secondary market for condos and houses, mostly in B.C. and Ontario, while purpose-built rents are stable,” Hildebrand added.
While the recent dip may be good news for renters, average rents in Canada remain 6.7 per cent higher than two years ago and 18.8 per cent higher than three years ago.
"Over the past five years, rents in Canada grew by an average of 3.4 per cent per year, generally in line with the long-term growth trend," Rentals.ca said.
Meanwhile, there seems to be growing interest in splitting the rent to save money. Listings on its site for shared accommodations increased 52 per cent compared to November 2023, according to Rentals.ca.
The rentals site said the national average asking rent for shared units actually rose by 3.9 per cent, to $997 a month.
