Average asking rents down 4% in July, but some signs market is stabilizing

A new report says the average national asking rent fell four per cent in July compared with last year and now stands at $2,037.

That marks the 22nd consecutive month of year-over-year declines in the average cost being sought by landlords, according to the latest monthly analysis from Rentals.ca and Urbanation.

Asking rents have now fallen 7.5 per cent over the past two years.

However, July’s decrease was the smallest year-over-year drop since February, and prices continue to rise when comparing month to month.

Rent prices ticked up 0.2 per cent from June, which was the fourth straight monthly increase.

“Canada’s rental market is showing signs of stabilizing, but not yet recovering,” said Urbanation president Shaun Hildebrand in a news release.

“While rents have risen for four straight months, this is typical seasonal momentum heading into the back-to-school period, with annual declines persisting across most of the country.”

Hildebrand said the Toronto market continues to stand out and is “worth watching as a potential leading indicator.”

Apartment and condo rents in Toronto rose 1.6 per cent from June to $2,577, and were down just 0.6 per cent year-over-year – the smallest annual decline among Canada’s major markets.

“This marks a further step towards an emerging turnaround in Toronto’s rental market after more than two years of annual declines, with supply tightening as fewer new condo units come to market and pent-up demand being released as the market becomes more affordable,” the report said.

Vancouver remains the most expensive municipal market with an average asking rent of $2,677 for apartments and condos, down 4.5 per cent year-over-year and 1.4 per cent from June.

On an annual basis, Calgary also saw a 4.5 per cent decline to $1,828, followed by a 3.6 per cent drop in Edmonton to $1,509. Average asking rents in Ottawa decreased 2.4 per cent to $2,145 and Montreal’s average price was down 1.6 per cent to $1,940.

Nationally, asking rents for purpose-built apartments fell 2.6 per cent year-over-year to an average of $2,041 last month, while asking rents for condominium apartments decreased 6.3 per cent to $2,063.

Secondary market units such as houses and townhouses saw the steepest annual decline, down 7.5 per cent to $2,007.