Market update October 2024: Rent growth slows to 3-year low

Last month, we asked if the Bank of Canada's three recent interest rate cuts would encourage renters to move into homeownership. Given that house prices are down, sales are up, and rent growth is sluggish, it certainly looks like it.

• The Canadian Real Estate Association (CREA) reports an average national home price of $649,100 in August – down 2.7% month over month and unchanged year over year.

• CREA also reports a 1.3% increase in month-over-month home sales in August.

• Ontario continues to have among the highest average home prices across the country (second only to British Columbia), at $817,915. This price is 2.4% lower than last month’s average.

• However, Ontario's August sales-to-new-listings ratio of 45% shows a balanced market, setting it apart as the only province not in a seller's market. Other provinces range from barely meeting the 60% threshold to qualify as a seller’s market (PEI at 61%) to being firmly in one (New Brunswick at 80%).

• In August, the average national asking rent dropped 0.6% from July to $2,187, while Ontario saw a 4.3% annual decline to $2,390, according to Rentals.ca.

• Rents grew at their slowest annual rate in 34 months, partly due to lower mortgage rates along with a slowdown in population growth and a softening labour market.

• The Canada Mortgage and Housing Corporation (CMHC) reports a 2.9% decrease in nationwide housing starts, from 255,794 units in July to 248,480 in August.

More rental market headlines

Why your next tenant may be a senior – PayProp blog

How a group of Toronto tenants turned to a risky last resort and got a ‘huge victory’ – Global News

Housing starts up in six largest cities but construction still not closing supply gap – CTV News