Ontario rents saw a significant drop in 2024, declining 4.7% to an average of $2,332, marking the steepest provincial decrease in Canada, according to the National Rent Report by Rentals.ca and Urbanation.
Nationally, average asking rents for all residential properties fell 3.2% to $2,109 in December, the lowest level in 17 months.
“The rental market softened across most parts of the country last year due to high apartment completions, slowing population growth, and a weakening economy,” said Shaun Hildebrand, President of Urbanation.
Toronto recorded a 7.1% drop in average rents, bringing the figure to $2,632. Shared accommodations in the city were also affected, with average rents falling 9.0% to $1,194.
While purpose-built rentals in Ontario remained relatively stable, declining only 0.3%, townhouse and single-family home rentals experienced sharper decreases. Studios were the only property type to see rent growth nationally, rising 1.7% to $1,591.
The decline comes after years of rapid rent growth, including increases of 8.6% in 2023 and 12.1% in 2022. However, rents remain 16.8% higher than five years ago.
Hildebrand noted that although further rent decreases may occur in 2025, they are expected to remain minimal due to Canada’s persistent undersupply of rental housing.
The National Rent Report is based on data from Rentals.ca and Urbanation, which provide insights into rental trends across Canada.
For detailed information, visit Rentals.ca.
(Written by: Joseph Goden)
