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CANADA'S AVERAGE RENT RISES AT SLOWEST PACE IN 3 YEARS, WHILE TORONTO AND
VANCOUVER POST DECLINES

Media Type: Online News
Outlet: Financial Post
Author: Gigi Suhanic
Published Date: September 11, 2024
Canadian renters might be seeing some light at the end of the tunnel, as the
average increase in the national rental rate rose at its slowest pace in almost
three years, according to a new report by Urbanation and Rentals.ca Network Inc.

The asking rent for all property types across Canada rose 3.3 per cent to $2,187
in August from the same period a year ago, the report said, maintaining the
trend of slowing increases in previous months. Year-over-year asking rents
increased 5.9 per cent in July and seven per cent in June. Rents reached a
record high of $2,202 in May 2024 and have since come down by 0.7 per cent.



The slowdown in rent increases was attributed to a rise in apartment completions
in 2024, which have reached “their highest total in decades,” moderating
population growth and a weakening labour market.

“Rent increases in Canada finally returned to their longer-term average after
nearly three years of excessive growth,” Shaun Hildebrand, president of
Urbanation, said in a press release.



Prior to the pandemic, the average asking rent for all property types in August
2019 was $1,818, and that fell to $1,718 in August 2020.



The data for August 2024 is a big comedown from August 2022, when rents rose 12
per cent from the year before.



Decelerating increases in rents is welcome news for people looking for a home as
well as the Bank of Canada , which in its most recent interest rate decision
cited shelter costs as one of the factors that could be blocking inflation from
slowing further.



“High shelter price inflation is still the biggest contributor to total
inflation but is starting to slow,” the central bank said in its official
statement announcing that it had cut interest rates for a third consecutive
time, taking the benchmark lending rate to 4.25 per cent.



The Bank of Canada started this cutting cycle at five per cent.



The Urbanation/Rentals.ca report said average asking rents for purpose-built and
condominium apartments rose 4.7 per cent in August from last year to $2,142, but
the purpose-built segment accounted for most of the increase.



“Studio and three-bedroom units led purpose-built rent growth, increasing by
10.7 per cent and 11.8 per cent annually, respectively,” the report said, while
studio condo rents fell 3.3 per cent, falling on an annual basis for the sixth
consecutive month.



British Columbia and Ontario posted the highest rents, but they also posted
declines above the national average, with annual average rents falling by 5.2
per cent and 4.3 per cent, respectively.



“The province with the least expensive rents was also the fastest growing, with
Saskatchewan apartment rents rising 21.4 per cent from a year ago to an average
of $1,338,” the report said.





Reduction of B.C. short-term rentals won't fix housing prices

Toronto rents hit three-year low — but brace for a comeback







At the municipal level, Toronto and Vancouver had the highest rents for August,
though they were down seven per cent and six per cent, respectively, from a year
ago.



The largest increases in average rents were recorded in Quebec City, Regina and
Saskatoon. They rose 22 per cent in Quebec’s capital and 18 per cent in both
Prairie cities.

Email: gmvsuhanic@postmedia.com

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