Market update December 2024: Renters come out on top

While many homebuyers seemed content with October’s slightly lower mortgage rates, renters were the real winners. Rent prices are dropping and more units become available daily, driven by a slowdown in non-permanent resident arrivals, as well as years of apartment construction starting to show results.

• The average national asking rent fell by 2% from September to $2,152 in October, according to Rentals.ca. This represents a 1.2% year-over-year decline – the first since July 2021.

• Rent growth across Canada has been slowing steadily since the summer, primarily in major Ontario and B.C. cities. Contributing factors include fewer non-permanent residents and international students not renewing their visas.

• Despite the recent declines, Toronto remains largely unaffordable, which drives many renters away – a one-bedroom rental averages $2,380. Smaller, more affordable markets nationwide still saw strong rent increases in October.

• Meanwhile, the Canadian Real Estate Association (CREA) reports an average national home price of $696,166 in October 2024 – up 4% month over month and 6% year over year.

• CREA also reports a 7.7% increase in month-over-month home sales in October.

• Ontario continues to have among the highest average home prices in the country (second only to British Columbia) at $878,620 – 3.2% higher than last month’s average.

• Despite higher prices, Ontario's well balanced sales-to-new-listings ratio of 48% in October sets it apart as the only province that isn’t currently a seller's market.

• Quebec and Newfoundland currently have finely balanced markets too, while the remaining provinces are experiencing seller’s market conditions.

• The Canada Mortgage and Housing Corporation (CMHC) reports the six-month trend in housing starts was flat in October at 243,522 units.

More rental market headlines

Tenants question if Ontario's Landlord and Tenant Board timelines are improving – CBC

Ontario debates sharing tenant arrears data with credit agencies – Canadian Mortgage Professional

Canadians are saving big – could it affect rent payments? – PayProp blog