Asking rents in Canada fell 2% year-over-year in January to an average of $2,057, marking the 16th consecutive month of annual rent decreases.
A report from Rentals.ca and Urbanation says that rents fell to their lowest level in 31 months in January and were down 6.3% compared with two years ago, but were 12.9% higher than levels seen before the Covid pandemic.
The report says lower rents and a softer market helped improve affordability, with the average rent-to-income ratio falling slightly below 30% in January for the first time in six years.
“There has been a meaningful improvement in affordability for renters in Canada, proving that more supply brings down costs,” said Shaun Hildebrand, president of Urbanation, in a news release.
“This should help draw more renters into the market this year, even as the population (growth) slows.”
The report says shrinking unit sizes have also contributed to the decrease in average rents over the past two years. The average size of rental listings fell to 857 square feet in January, from 885 square feet last year.
Asking rents for condo units fell 5.7% annually to $2,093 on average, while rents for houses and townhouses fell 3.1% to $2,078.
Rents for purpose-built units declined one per cent year-over-year to $2,049.
By unit type, three-bedroom rentals were the only segment to see an increase in prices, rising 1.1% annually to an average of $2,506. Within the purpose-built segment, three-bedroom rental prices grew 3.9% over the past year, reaching an average price of $2,756.
Across provinces, average apartment rents declined the most in B.C. at 4.7%, followed by Alberta at 4.3%, Ontario at 3.3% and Quebec at 2.6%.
Meanwhile, all six of Canada’s largest rental markets saw annual rents decline last month. The report said apartment rents in Vancouver fell 9.2% year-over year to $2,630. Calgary rents declined 5.7% to $1,815 and Toronto rents declined 4.6% to $2,495.
Rents in Ottawa declined 4.8% during the period, 3.7% in Montreal and 2.6% in Edmonton.