Canada’s rent growth hits three-year low due to decrease in international students
https://tnc.news/2024/10/12/rent-growth-international-students/
The rent increase in Canada has slowed to a pace not seen in three years, largely attributed to international student enrollments plummeting after record highs.
Average asking rents for all residential property types in Canada grew by just 2.1% year-over-year in September, reaching $2,193 per month, according to the latest Rentals.ca and Urbanation report, marking the smallest annual rent increase since Oct. 2021.
The report highlighted a five-month trend of slowing rent growth, with the annual increase dropping significantly from May’s 9% rate.
However, rents skyrocketed from $1,751 to $1,934 between Sept. 2021 and 2022, a 10.5% increase. They saw a further increase from $1,934 to $2,149 between Sept. 2022 and 2023, an 11.1% increase or a cumulative 22.7% increase over the two years. The rents have nearly plateaued, increasing only $44 or 2% from $2,149 to $2,193 between Sep. 2023 and 2024.
“Rents in Canada are increasing at their slowest pace in nearly three years, largely the result of foreign student enrollments dropping by roughly a half from their record highs, with the impact felt most in B.C. and Ontario,” said Shaun Hildebrand, President of Urbanation. “Meanwhile, smaller, more affordable markets continue to see strong upward pressure on rents as demand shifts to less expensive parts of the country.” Continue…