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Rents went up just 2.1% in September, continuing monthly price slowdown

A new report says growth in average asking rents across Canada last month slowed to the lowest rate since October 2021, at 2.1 per cent year-over-year.

Prices still rising, but rate of increase hit its lowest point since October 2021

A upwards angle shows a bright red "FOR RENT" sign with a house beyond it and the blue sky past them all.
A new report says the average asking rent for a home in Canada saw the lowest rate of increase in September since October 2021. (Sean Kilpatrick/The Canadian Press)

A new report says growth in average asking rents across Canada last month slowed to the lowest rate since October 2021, at 2.1 per cent year-over-year.

The report from Rentals.ca and Urbanation finds average asking rents sat at $2,193 for September, marking the fifth straight month that the annual rate has slowed from May's nine per cent growth.

Urbanation president Shaun Hildebrand says rents in Canada are increasing at the slowest pace in nearly three years, which he attributes to foreign student enrolments dropping by roughly half from record highs.

A residential street is shown, with a person walking down the sidewalk. Trees are bare of leaves. A red sign hangs outside of the second floor of a house, attached to the balconey.
A sign shows an apartment for rent in the Montreal borough of Lasalle on April 23, 2024. (Christinne Muschi/The Canadian Press)

However, rent still remains 13.4 per cent higher than it was two years ago and 25.2 per cent higher than three years ago, according to the report. 

Largest annual rent declines in Ontario and B.C. 

Ontario and B.C. recorded the most significant annual rent declines, with the former seeing average asking rents for purpose-built and condominium apartments down 4.3 per cent to $2,380 and the west coast province recording a 3.2 per cent drop to $2,570.

WATCH | Affordable housing is disappearing in Canada: 

Affordable housing is vanishing. Are these landlords to blame?

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Canada lost more than half a million affordable rental units in a decade, and experts say it’s because 'financialized landlords' are turning housing into investments. CBC The National investigates the impact of the growing industry and what it means for renters.

Rents surged 23.5 per cent in Saskatchewan, making it the fastest-growing province in the country in terms of asking price.    

By city, apartment rents declined in Vancouver, Toronto, Calgary, and Montreal, while Ottawa saw a slight increase. As more Canadians seek shared accommodations in search of more affordable options, the price has also gone up, with shared accommodation rents growing by 6.9 per cent annually. 

LISTEN | Inside the rental struggles for those earning minimum wage in Canada: 
If you are paid a minimum wage in Canada renting an apartment may mean handing over a big chunk of your salary. Economist David MacDonald is tracking the situation

With files from CBC News