Rents in Canada have fallen to a 33-month low, report finds

The average rent in Canada fell to a 33-month low in February, marking the 17th consecutive month of declines, a new report says.

And for the first time in six years, many Canadians are now spending less than 30 per cent of their income on rent.

Average asking rents for all property types in Canada fell to $2,030 in February, the monthly rental report by Rentals.ca and Urbanation released on Monday said. Compared to January, rents fell by 1.3 per cent, the largest drop for the month of February since 2020.

In February, the average rent represented 29 per cent of household income for renters, “falling below the industry’s 30% affordability benchmark for the first time in more than six years,” the report said.

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Some of Canada’s largest rental markets saw the steepest declines, with Toronto rents falling by 7.9 per cent compared to this time last year across all property types to $2,482.

Rents for one-bedrooms in Toronto declined by 6.9 per cent to $2,201.

1:51 Report shows rent in Halifax increasing faster than anywhere else in Canada

Despite a steep decline of 7.6 per cent compared to this time last year, Vancouver remained the most expensive major market in the country with average rents coming in at $2,672 a month across all property types and $2,376 for one-bedrooms.

“Canada is undergoing its largest downturn in rents in recent history,” said Shaun Hildebrand, president of Urbanation.

“The supply that everyone has been waiting so long for has arrived at a time when demand has slowed, creating a rare opportunity for renters to take advantage of better affordability.”