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Canada’s Rental Market Hits 33-Month Low as Affordability Improves

Analysts tie the downturn to new supply arriving into a cooling demand environment.

Overview

  • Average asking rent fell to $2,030 in February, down 1.3% month over month, the steepest February decline since 2020.
  • Rental affordability improved as the rent-to-income ratio dropped to 29%, moving below the 30% benchmark for the first time in more than six years.
  • Vancouver posted the largest monthly increase among major markets and remained the priciest city, even as the national average declined.
  • Toronto saw notable year-over-year weakness, with overall asking rents down 7.9% and one-bedroom rates down 6.9%.
  • Regional and segment splits persisted, with Victoria down year over year and Nanaimo up, while condo rents fell fastest and purpose-built rentals proved more resilient.