The report reveals a 3.2% decline in rents in comparison with December of the earlier yr, marking the fifth straight month of decreases.
This follows years of great hire worth progress, with common rents rising 8.6% in 2023 and a pointy 12.1% in 2022. Regardless of the current cooling, rents are nonetheless 16.8% larger than 5 years in the past.
Shaun Hildebrand, president of Urbanation, attributes the market slowdown to record-high residence completions, a deceleration in inhabitants progress, and financial challenges in 2024.
“The rental market softened throughout most elements of the nation final yr,” he stated in a launch.
“Present traits counsel rents might expertise additional decreases in 2025, which to this point have been targeted on secondary market models,” he added. “Nevertheless, any hire declines needs to be non permanent and stay minimal principally attributable to a long-term under-supply of rental models within the nation, with rents set to speed up within the coming years as the present slowdown in development works to limit provide.”
Lease worth declines concentrated in Ontario
Ontario noticed the most important drop in rental costs final yr, with common residence rents falling 4.7% to $2,332. This was a pointy reversal from the three.7% improve in 2023, exhibiting how shortly market situations can change. Even with the decline, Ontario stays probably the most costly locations to hire in Canada, second solely to British Columbia.
In B.C., rents dipped barely by 0.5% to a median of $2,487. This marks the second straight yr of declines, following a 1.4% drop in 2023. Regardless of these decreases, B.C. and Ontario proceed to prime the checklist because the priciest provinces for renters.
On the flip facet, Manitoba noticed rents climb 5% in 2024, bringing the typical to $1,618. This was proper in keeping with the 4.9% improve seen in 2023, making Manitoba the chief in hire worth progress final yr.
Alberta, in the meantime, skilled probably the most noticeable slowdown. After rents soared 15.6% in 2023, progress cooled to only 1.6% in 2024, with the typical hire reaching $1,718 by December. It’s a reminder of how rental traits can fluctuate extensively relying on the area and market situations.
Right here’s a take a look at the year-over-year hire will increase in a number of the nation’s key markets:
| Common hire (December 2024) |
Annual % change | |
|---|---|---|
| Calgary, AB | $1,921 | -7% |
| Halifax, NS | $2,323 | +10% |
| Montreal, QC | $1,998 | -1% |
| Ottawa, ON | $2,165 | -3% |
| Regina, SK | $1,308 | +1% |
| Toronto, ON | $2,632 | -7% |
| Winnipeg, MB | $1,624 | +4% |
| Vancouver, BC | $2,882 | -6% |
| Victoria, BC | $2,362 | +3% |
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Final modified: January 9, 2025