Canada is seeing a decrease in housing rents due to a decline in international students’ enrollment.
With less demand for housing, the average monthly rent has dropped.
According to reports from Global News, average asking rents for various property types in Canada have experienced their slowest growth rate since October 2021.
Findings show that the average rent has reached $2,193 per month.
The report highlights that a significant drop in foreign student enrollment has been a major factor influencing this slowdown. “Rents in Canada are increasing at their slowest pace in nearly three years, largely the result of foreign student enrollments dropping by roughly half from their record highs, with the impact felt most in B.C. and Ontario,” said Shaun Hildebrand, president of Urbanation.
Trends in Rent Growth
Reports inform that despite the recent slowdown, rents are still 13.4 percent higher than they were two years ago and 25.2 percent higher than three years ago.
While the overall growth rate has decreased, some markets are still seeing strong demand. “Meanwhile, smaller, more affordable markets continue to see strong upward pressure on rents as demand shifts to less expensive parts of the country,” Hildebrand added.
This means that, although the overall increase in rent prices has slowed down, certain areas still have high demand for housing. Specifically, smaller and more affordable markets are experiencing rising rents as people look for cheaper options in different parts of the country.
Changes in Condominium Rents
The report notes a decline in condominium rents across Canada, which fell by 1.7 percent in September to an average of $2,296. In Vancouver, the average rent for condos dropped by 13.6 percent to $3,232, while Toronto experienced a 7.7 percent decrease, bringing the average rent to $2,745. Calgary also saw a decline of 3.4 percent, with condo rents averaging $2,060.
Conversely, purpose-built apartments have seen an annual rent increase of 5.4 percent, reaching an average of $2,138. Studio units showed the strongest growth at 11.1 percent, indicating a shift in tenant preferences.
Provincial Variations in Rent
Reports also inform that ontario and British Columbia recorded significant annual rent declines, with average asking rents for purpose-built and condominium apartments decreasing by 4.3 percent in Ontario to $2,380 and by 3.2 percent in B.C. to $2,570.
Meanwhile, Saskatchewan emerged as the province with the fastest rent growth, experiencing a notable increase of 23.5 percent.
In major cities, rents have fallen in several key markets. Vancouver reported its 10th consecutive month of rent declines, with a drop of 9.5 percent compared to the previous year, averaging $3,023.
Toronto saw an 8.1 percent decrease, bringing its average rent down to $2,668. Both Calgary and Montreal recorded annual declines of 2 percent.
Shared Accommodation Trends
Interestingly, rooms in shared living spaces in Canada have increased by 6.9% over the past year, averaging $1,009 in September. This trend suggests that more renters are opting for shared accommodations as a way to find more affordable housing options.
The rental market in Canada is undergoing significant changes, influenced by shifts in international student enrollment and tenant preferences. While some areas see declines, others experience rising rents, showcasing the complexities of the current housing landscape.
