(Toronto) A report from Rentals.ca and Urbanation says the average rent in Canada increased 3.3 per cent in August compared to a year earlier to $2,187.
Average rents fell in some of Canada’s largest and most expensive markets, continuing a trend that has been going on for months. Conversely, prices rose in smaller markets.
Thus, the average rent decreased by 1% in Montreal to $1,988. It fell by 7% in Toronto to $2,697 and by 6% in Vancouver to $3,116. This is a decrease for the ninth consecutive month in this city.
Rents also fell slightly in Ottawa and for the first time since February 2021 in Calgary.
In contrast, other cities saw double-digit increases, including Quebec City, where the average rent rose 22% to $1,705, Regina, where it jumped 18% to $1,418, and Gatineau, where it grew 15% to $2,054 between August 2023 and August 2024.
In Quebec, the increase was only 1.6%. The average rent is $1,962 in the province.
The report said rent increases were the lowest annually in nearly three years, down sharply from 7% growth in June and 9.3% in May, the report said.
“The moderation in rent increases can be attributed to the number of apartments completed this year reaching its highest total in decades, as well as a recent slowdown in population growth and a slowdown in the labor market,” the report said.
The average rent is also down slightly from July, when it was $2,201.
However, it is up sharply from the pandemic low, when it was below $1,700. Before the pandemic, it was just below $1,900.
The federal government has put in place some measures to try to curb rent increases, including a cap on international student enrollments and an overall reduction in the number of temporary residents, while deploying more funds to create more rental supply.
Construction of new rental options, however, has been hampered by high interest rates and rising construction costs.
In Atlantic Canada, the average rent is now $2,226, a 7% increase year-over-year.