The average rent for all types of residential properties in Canada was $2,109 per month in December, a decrease of 3.2% compared to the previous year, marking the fifth consecutive month of falling rents, according to a report from Rentals.ca and Urbanation using data from online listing services in primary and secondary rental markets.

This decline followed years of significant rent increases, with rises of 8.6% in 2023 and 12.1% in 2022. The drop in 2024 is the first since the COVID-19 pandemic when rents decreased by 5.4%.

Highlights in Ontario and Ottawa

Ontario experienced one of the largest rent reductions, with the average rent for all apartments falling by 4.7% to $2,332. This drop followed a 3.7% increase in apartment rents during 2023. Despite this decline, Ontario remains the second most expensive province for rents after British Columbia.

In the capital city of Ottawa, the city ranked 13th in the country for rental costs. The average rent for one-bedroom apartments reached $2,012, representing a decrease of 0.2% compared to the previous month and 2.5% compared to the previous year.

However, despite this slight decline, the situation is still challenging for the most vulnerable groups. The latest survey conducted in Ottawa on the night of October 23 revealed that 2,952 individuals were experiencing homelessness throughout the city, a 13% increase compared to the 2,612 individuals in 2021.

Shelters are experiencing severe overcrowding, described by the "Ottawa Mission" in its annual report for 2024 as "catastrophic levels" of food insecurity and homelessness. The organization pointed to an unprecedented rise in homelessness rates in the city.

Peter Tilley, the CEO of "Ottawa Mission," stated in an interview with CityNews: “We are in a desperate situation, as the promises made in the federal housing strategy announced in 2017 have not even come close to achieving their goals. We have people waiting their turn for a bed every night, and this is happening across the country.”

A Broader Picture

Despite the recent rent declines, overall trends show a 16.8% increase in rental costs across Canada over the past two years, leaving many Canadians facing difficulties in securing affordable housing. The combination of rising rents, a supply shortage, and increasing homelessness highlights the urgent need for action to address the housing crisis in Canada.