The Average Canadian Rents Drop In June and Toronto rents hit new lows.

Despite the typical trend of rent prices rising in the summer, those in Toronto and across Canada dipped in June compared to the month before, according to a report published Tuesday.

Toronto prices for purpose-built and condominium rents dropped 2.5 per cent from May to June, reaching a 22-month low, as rents nationwide experienced their largest monthly decline since early 2021 with a 0.8 per cent dip, the National Rent Report by Rentals.ca and Urbanation found.

In his analysis of Tuesday’s data, Urbanation President Shaun Hildebrand noted that markets are showing signs of settling. “Rents at the national level are clearly levelling out,” he says. “At this stage of the market, strong rent increases are mainly limited to inexpensive cities, particularly in the Canadian Prairies, while larger markets dealing with severe affordability issues are seeing rents slow or fall.”

Toronto apartment prices declined on an annual basis for the fifth straight month, the report found. Studios were listed for $1,993 on average in June, while one-bedroom units cost about $2,458, two-bedroom apartments cost $3,217 and three-bedroom units cost $3,673.

Asking rents for shared accommodations in the city, or roommate rents, also declined by 1.7 per cent month-over-month, and four per cent annually, to an average of $1,236.

In provincial analysis, Ontario comes out on the bottom for year-over-year rent increases — or the top, depending on how you look at it. Month-over-month, Ontario’s average asking rents fell 1.7%, bringing the year-over-year down 1.3% to $2,382.

Everywhere else, average rents increased, with Saskatchewan leading the charge for the third month in a row with a 22.1% increase for purpose-built and condominium apartments. Still, the prairie province remains 38% below the national average at $1,339.