Rental market heading into summer with softer price pressure
Canadian asking rents dropped 4.7% year-over-year in May, marking the 20th straight annual decline as economic headwinds persist.
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Canada's rental market is heading into peak summer season with unusually soft pricing. The average asking rent in May was $2,029, down 4.7 per cent year-over-year and about $100 below last year, according to analysis from Rentals.ca and Urbanation. It's the 20th consecutive month of annual declines.
Month-to-month, rents ticked up just 0.1 per cent from April — well below the five-year seasonal average of 1.3 per cent. That slowness signals weakness, not strength, in the market.
Alberta saw rents fall 4.7 per cent year-over-year, in line with the national rate. British Columbia and Ontario posted steeper declines at 5.4 and 5 per cent respectively.
What's driving the softness? Urbanation President Shaun Hildebrand points to three headwinds: a weak economic backdrop, declining population growth, and record apartment completions flooding the market with new units. All three are keeping rent increases "softer than what is typical for this time of year," he said.
Purpose-built apartments saw the biggest dent, down 3.4 per cent year-over-year, while condo rentals fell 6.8 per cent. For renters, it's a rare moment of breathing room in a market that's been punishing for years.