World
Canada sees decline in rental prices amid drop in international student enrollment
Canada is witnessing a notable decline in rental prices, attributed largely to a significant decrease in international student enrollment.
This shift has resulted in reduced demand for housing, leading to a decrease in average monthly rents.
According to a report by Global News, the average asking rents across various property types in Canada have experienced the slowest growth rate since October 2021.
Recent data indicates that the average rent has now fallen to $2,193 per month.
The report emphasizes that a substantial decrease in foreign student enrollment has been a key factor in this slowdown.
“Rents in Canada are increasing at their slowest pace in nearly three years, largely the result of foreign student enrollments dropping by roughly half from their record highs, with the impact felt most in B.C. and Ontario,” said Shaun Hildebrand, president of Urbanation.
Despite the recent deceleration in rent growth, prices are still significantly higher than in previous years—13.4 percent higher than two years ago and 25.2 percent higher than three years ago.
While the overall market has cooled, demand remains robust in some areas. “Meanwhile, smaller, more affordable markets continue to see strong upward pressure on rents as demand shifts to less expensive parts of the country,” Hildebrand added. This indicates that while rent hikes have slowed in larger markets, smaller and more affordable regions are seeing an increase as renters seek cheaper housing alternatives.
The report also highlights a drop in condominium rents across the country. In September, condo rents declined by 1.7 percent, bringing the average to $2,296. In Vancouver, rents for condos fell sharply by 13.6 percent to $3,232, while Toronto saw a 7.7 percent drop, with rents averaging $2,745. Calgary recorded a 3.4 percent decline, with the average rent for condos reaching $2,060.
However, purpose-built apartments saw a different trend, with an annual rent increase of 5.4 percent, pushing the average rent to $2,138. Studio apartments led the growth, with an 11.1 percent rise, reflecting shifting tenant preferences.
There are also significant provincial differences. Ontario and British Columbia reported notable annual rent declines for both purpose-built and condominium apartments, with Ontario rents falling by 4.3 percent to $2,380, and British Columbia seeing a 3.2 percent drop to $2,570. Saskatchewan, on the other hand, experienced the fastest rent growth in the country, with a 23.5 percent increase.
In major cities, the rental market has also seen declines. Vancouver reported its 10th consecutive month of decreasing rents, with a 9.5 percent drop compared to the previous year, bringing the average rent to $3,023. Toronto experienced an 8.1 percent decline, reducing its average rent to $2,668. Calgary and Montreal also recorded annual declines of 2 percent.
Interestingly, shared accommodation has grown more popular, with the average rent for rooms in shared spaces rising by 6.9 percent over the past year, now averaging $1,009 in September. This suggests more renters are turning to shared living arrangements to secure affordable housing.
Overall, the Canadian rental market is undergoing significant changes, largely influenced by the drop in international student enrollment and shifting tenant preferences. While some markets experience declines, others face rising rents, reflecting the complexities of the current housing situation.
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