Canada Rent Report for January 2025
The Canadian rental market experienced a notable shift in 2024, with average asking rents declining for the first time since the COVID-19 pandemic. According to the January 2025 Rent Report by Rentals.ca and Urbanation, the average asking rent for all residential property types in Canada decreased by 3.2% year-over-year, reaching a 17-month low of $2,109 in December 2024.
National Trends
This decline follows significant rent increases in previous years, with growth rates of 8.6% in 2023 and 12.1% in 2022. Over the past five years, rents have risen by a total of 16.8%, averaging an annual increase of approximately 3.15%. The downward trend in 2024 was consistent over the latter part of the year, with December marking the fifth consecutive month of declining rents. Between September and December, average asking rents fell by 3.8%, indicating a steepening decline heading into 2025.
Provincial Overview
- Ontario: The province experienced a 4.7% year-over-year decrease in apartment rents, averaging $2,332 in December 2024. Despite this decline, Ontario remains one of the most expensive provinces for renters. BNN
- British Columbia: Average rents dipped slightly by 0.5% to $2,487, marking the second consecutive year of declines. Nevertheless, B.C. continues to be among the priciest provinces for renters. Mortgage Rates Canada
- Manitoba: The province led in rent growth, with a 5% annual increase bringing the average to $1,618. This consistent rise aligns with the 4.9% increase observed in 2023. BNN
Municipal Highlights
Here are the average rents for one-bedroom and two-bedroom units in select Canadian cities as of December 2024:
| City | 1-Bedroom Avg. Rent | 2-Bedroom Avg. Rent |
|---|---|---|
| Vancouver, BC | $2,512 | $3,430 |
| Toronto, ON | $2,360 | $3,077 |
| Montreal, QC | $1,727 | $2,266 |
| Calgary, AB | $1,606 | $1,933 |
| Ottawa, ON | $2,012 | $2,483 |
Factors Influencing the Market
Several factors contributed to the softening rental market in 2024:
- Increased Supply: A surge in apartment completions reached multi-decade highs, expanding the available rental inventory. BNN
- Slowing Population Growth: A deceleration in population inflows reduced the immediate demand for rental housing. Mortgage Rates Canada
- Economic Challenges: A weakening economy influenced renters’ ability to afford higher rents, contributing to downward pressure on prices. Mortgage Rates Canada
Outlook for 2025
Urbanation President Shaun Hildebrand suggests that while rents may experience further decreases in early 2025, these declines are expected to be temporary and minimal. The long-term under-supply of rental units in Canada is likely to exert upward pressure on rents in the coming years, especially as the current slowdown in construction may restrict future supply.
In conclusion, the Canadian rental market in 2024 saw a reversal of the upward trend in rents observed in previous years. While the recent declines offer some relief to renters, underlying supply constraints suggest that this trend may not persist in the long term. Stakeholders should monitor these dynamics closely as they plan for the future.
Get in Touch
If you have any questions, comments, or need help renting your home, or finding a rental home in Toronto, Hamilton or GTA, please contact Sean Findlay, Realtor at 1-888-450-8301 or click here to schedule a call.