OTTAWA — Rents in Canada are still rising, but the pace of growth has slowed compared to last year, according to a new report.
According to data from Rentals.ca and Urbanation, asking rents for all types of residential properties averaged $2,201 in July, up 5.9 percent from a year ago.
The year-on-year increase is the smallest since early 2022, while growth has often been above 10 percent recently, the report said.
During the pandemic, rents came under downward pressure due to slowing population growth and weakening demand, with the average price hitting a low of $1,685 in March 2021. Last month’s average price represents an increase of about 31 percent since then.
However, recent price increases have been felt more in smaller markets, while major cities have seen some year-on-year price declines due to a wave of completed condominiums on the rental market.
In Vancouver, rents fell by about seven percent in July compared to a year ago, averaging $3,101. In Toronto, rents fell by five percent to $2,719.
Quebec City, on the other hand, saw a 21 percent increase to $1,657, Halifax saw an 18 percent increase to $2,373, and prairie cities such as Saskatoon, Edmonton and Regina also saw double-digit increases.
Overall, all provinces except Ontario and BC reported rent increases compared to the previous year, with Saskatchewan leading the way at 22.2 percent.
There were also regional differences month-on-month, but there was little change at the national level: the average rose by 0.8 percent in July compared to the previous month, compared to a decline of 0.8 percent in June.
“Rents remained virtually unchanged over the past three months, falling just $1 nationally from May to July,” the report said.
The federal government has taken a number of measures to curb the rise in rents. These include a cap on the enrollment rate of foreign students. The number of temporary residents is also to be reduced overall. At the same time, additional funds are being made available to expand the supply of rental apartments.
However, the construction of new rental apartments is hampered by high interest rates and rising construction costs.
©2024 The Canadian Press
