Year-over-year rent prices fell in some big cities in August — and smaller markets got more expensive

A new report says August rental rates fell in some of Canada's largest and priciest markets to continue a months-long trend, while prices rose in smaller markets.

The report from Rentals.ca and Urbanation found the average Vancouver rental rate was down six per cent from last year to $3,116 for the ninth straight month of declines, while Toronto rents fell seven per cent to $2,697 for the seventh month of retreat. 

Rents were also down slightly in Ottawa, Montreal and, for the first time since February 2021, in Calgary.

In contrast, numerous other cities have seen double-digit increases, including a 22 per cent jump in Quebec City to $1,705, an 18 per cent jump in Regina to $1,418 and a 15 per cent increase in Gatineau, Que., to $2,054.

Other increases were seen in Saskatoon, Edmonton and Winnipeg and Kingston.

Overall, rising rents in smaller markets outweighed the reductions in the biggest cities to leave asking rents in August up 3.3 per cent from last year to $2,187.

The report says the increase in rent was the lowest annual rise in almost three years as apartment completions reach their highest total in decades while population growth and the labour market weaken.

"Seeing that rent increase by 3.3 per cent over the past year is probably the lowest we've seen in a very long time," said Giacomo Ladas, communications manager at Rentals.ca.

While Toronto and Vancouver each saw declines, Ladas said that the "real big twist" was Calgary, which has "led for so long in rent increases."

"It wasn't that long ago where we saw Calgary was experiencing double-digit annual rent increases — that was just at the beginning of the year," added Ladas. "But now asking rents for the first time since 2021 in Calgary have gone down by 1.1 per cent."

On a provincial basis, Ladas noted that Ontario and British Columbia, which are the most expensive provinces for renters, both saw year-over-year decreases.