Canada’s rental market continued to cool last month as record levels of new housing supply and softer demand pushed prices lower across much of the country compared to last year.
Zumper’s National Rent Index showed the median one-bedroom rent edged up just 0.1 per cent in September to $1,821, while two-bedroom units rose 0.1 per cent to $2,258 compared to August. On an annual basis, rents fell 4.1 and 4.3 per cent, respectively, the twelfth straight month of year-over-year declines.
Major markets such as Toronto and Vancouver, where new apartment completions have surged, posted some of the steepest rent drops. In contrast, smaller Ontario cities like Kingston, Windsor and Winnipeg, where construction pipelines remain more limited, have shown greater price stability.
The data points to a broader trend affecting all sides of the housing market: record construction activity, slower population growth following federal immigration policy shifts, and a cooling labour market are easing pressure on renters after years of steep increases.
For renters, it’s the most tenant-friendly market seen in years, though the relief may not be felt equally everywhere, according to Zumper’s report.
Kingston tops rent growth as other Ontario cities see steep declines
Kingston posted the fastest rent growth in the country last month, with average prices rising five per cent compared with a year earlier. Windsor ranked second with a 3.6 per cent increase, while Regina placed third at 3.1 per cent.
At the other end of the market, Barrie saw the sharpest decline, with rents down 10.3 per cent from last year. Toronto followed closely with a 10.2 per cent drop, while Kitchener recorded a 7.9 per cent decrease.