Rental prices across Ontario are continuing to trend downward as part of a broader national decline, according to the latest National Rent Report.
The report shows the average asking rent in Canada fell to $2,030 in February, down 2.8 per cent year over year and marking the 17th consecutive month of annual decreases. It is the lowest level recorded in nearly three years.
Ontario saw a 4.3 per cent annual decline in apartment rents, with some of the most notable decreases concentrated in Toronto and surrounding communities.
In Toronto, rents dropped across most unit types, including a nearly seven per cent decline for one-bedroom units. Suburban markets also recorded steep decreases, with Oakville down 14.6 per cent and Vaughan down 11 per cent year over year.
The report attributes the downward trend to an increase in available rental supply combined with softer demand, creating improved conditions for renters.
Affordability has also shown signs of improvement. Average rent now represents approximately 29 per cent of renter household income, falling below the commonly used 30 per cent affordability threshold for the first time in more than six years.
Despite the overall decline, some markets, including Ottawa, recorded modest month over month increases, suggesting the rental market may be beginning to stabilize.
Analysts say while the recent drop offers some relief, rental costs remain higher than they were several years ago, and longer term affordability challenges persist.
(Written by: Joseph Goden)