The Greater Toronto Area’s rental market continues to cool down, with the national average asking rent experiencing its 13th consecutive month of year-over-year declines. According to a recent report from Rentals.ca and Urbanation, the average asking rent in Canada fell 2.2% in October to $2,105. This trend is also reflected in the GTA, although specific regional data wasn’t highlighted in this particular report.
The report breaks down the rental market further, revealing that asking rents for purpose-built apartments saw a slight decrease of 0.7% to an average of $2,085. Condominium apartments, a significant portion of the GTA rental landscape, experienced a more substantial drop of 4.3% year-over-year, with average asking rents at $2,167.
While these declines offer some relief to prospective renters, it’s important to note that average asking rents remain elevated compared to pre-pandemic levels. The report indicates that current asking rents are still 6.2% higher than three years ago and a significant 14% above what they were in October 2019. This suggests that while the market is softening, affordability remains a key concern for many in the GTA.
Looking ahead, Urbanation president Shaun Hildebrand suggests that the rental market may continue to face challenges. Factors such as slowing population growth, elevated unemployment rates, and a surge in new apartment completions could put downward pressure on rents in the near term. This increased supply, in particular, is a trend worth watching in the GTA, as new developments continue to add units to the rental pool.
Outside the GTA, other major Canadian cities are experiencing similar trends. Vancouver saw a 7.4% decrease in apartment rents, bringing the average to $2,728, while Calgary experienced a 7.2% drop to $1,851. British Columbia and Alberta also saw significant year-over-year declines, with rents falling 5.8% and 5.3% respectively.
