According to the latest report from Rentals.ca, rent in Canada* fell on a year-over-year (y/y) basis for the first time in three years.

At $2,152 per month in October, average rent across all residential property types in Canada* was 1.2% lower than 12 months earlier. This is the first year-over-year (y/y) decrease since July 2021.

What this means to actual renters, however, depends on where they live.

For example: the average asking rent for a vacant apartment or condo in Vancouver was 8% lower than a year ago versus 8% higher in Edmonton.

Softening the blow in Edmonton was the lower absolute cost of rent for a vacant apartment or condo at $1,584 compared to almost double that ($2,945) in Vancouver.

In Calgary, average rent for a condo or apartment was 5% lower y/y at $1,995 in October. This is the third pullback in a row, but comes after three years of increases that pushed average rent in the city to record highs.

Although well below high-priced markets in B.C. and Ontario, Calgary is the 14th most expensive market** of the 35 cities on the Rentals.ca list. Edmonton, meanwhile, is 31st and Fort McMurray is the least expensive at 35th.

The recent declines in asking rent in Calgary are due in part to rising supply as the city has added significantly to its stock of new rental units.

Although Edmonton is also adding rental units, the inflow of people from places like Calgary chasing the more affordable prices in the city is likely a key reason for the rent increases.

Looking ahead, slower population growth as the flow of international migration is restricted by new federal caps will reduce pressure on rent prices while lower interest rates encourage more people to pursue homeownership.

*Based on the asking rates of available (vacant) units in 35 cities.

**The rankings are based on the average asking rent for vacant 1-bedroom units.

Answer to the previous trivia question: President Johnson and Prime Minister Pearson signed the Canada-US Auto Pact in January 1965.

Today’s trivia question: What are male turkeys called?