Canadian Rents Fall For 24th Month, Driven By Shrinking Unit Size

Canadian rents continue to fall but a lack of demand hasn’t been the driver. Rentals.ca and Urbanation data shows asking rents fell in September. This marked a 24th straight month of declines, mostly in condo apartments. However, more than half the drop within the past two years was due to shrinking unit size. Canadian Rents Have Dropped For 2 Years Straight Source: Rentals.ca; Urbanation. The average asking rent for all unit types fell for a 24th straight month to $2,034/month in September. That brings prices 4.2% lower than last year, and 9.2% (-$168) below the May 2024 peak. While last month was the weakest September since 2022, asking rents are still 16.2% higher than they were in 2021. “According to Statistics Canada, average weekly earnings in Canada have risen by 19.4% over the past five years, indicating a general improvement in rental affordability,” explains the author of the report. However, recent Bank of Canada research shows wage gains are concentrated in older households. That’s not quite the relief suggested in the headline. The slump is primarily in Ontario (-4.8% y/y), Manitoba (-3.2%), B.C. (-2.9%), and Alberta (-2.6%). Meanwhile, in Atlantic Canada (+3.5% y/y), ...