The report from Rentals.ca and Urbanation found that the average rental rate in Vancouver fell to $3,116 in August, marking the ninth consecutive month of decline. This represents a six per cent decrease from the previous year, which reflects a broader trend of falling rents in Canada's largest markets. Meanwhile, Toronto saw a similar trend, with rental rates declining by seven per cent to $2,697, continuing a seven-month retreat. This suggests that major urban areas are experiencing significant shifts in rental demand.
In contrast, smaller markets are experiencing notable increases in rental rates, with Quebec City seeing the most significant jump at 22 per cent, bringing the average rent to $1,705. Regina's rental rates rose by 18 per cent to $1,418, and Gatineau saw a 15 per cent increase to $2,054. These changes indicate that while large urban markets are facing declines, smaller markets are benefitting from increasing demand, likely due to shifts in population dynamics and preferences.
Overall, while the largest cities in Canada are experiencing decreases in rental rates, the overall asking rents in August increased by 3.3 per cent compared to the previous year, reaching an average of $2,187. This rise in asking rents is the lowest annual increase in almost three years. The report attributes this seemingly contradictory trend to high rates of apartment completions, which have reached their highest total in decades, alongside weakening population growth and a softening labor market.
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