‘Turning point’: Rent prices should see relief this year, but markets still tight
For Canadian renters, it may feel like the years since the COVID-19 pandemic have brought one hit after another.
After a 4.6 per cent increase in the average asking price of a rental unit in 2021, monthly payments surged 12.1 per cent year-over-year in 2022, according to data from Rentals.ca and Urbanation.
Then in 2023, asking rents increased by an average of 8.6 per cent.
However, experts say the rental market across the country seems poised for a cool-down in 2025 as more supply opens up and some look to buy their first home.
Whether various regions experience outright declines in rents or simply decelerate in their growth, the rapid increases of recent years are unlikely to continue in 2025.
“This comes after record-breaking growth in 2022 and 2023. Rental prices are so expensive, like, they’ve blown up,” said Rentals.ca spokesperson Giacomo Ladas.
But data from his platform shows a turnaround is already underway. Average asking rents fell 3.2 per cent nationally to $2,109 in December year-over-year, marking a 17-month low.
“What we’re seeing is tons of movement. Incentives are now coming back into units.” …[Continue Reading]