Falling Rents Provide Little Relief as Affordability Still Out of Reach for Canadian Renters
Average asking rents in Canada fell for the second consecutive month in May, dropping 0.9% to about $1,829 per month . Despite the modest decline, rental costs remain high and wage growth has not kept pace, leaving many tenants struggling to afford housing . Provinces show varied trends: Alberta was the only jurisdiction with a year‑over‑year rent decrease due to slower net migration, while provinces like Nova Scotia and Quebec registered notable increases .
Economists warn that gradual decreases in mortgage rates will offer little relief in the near term . A limited supply of affordable homes and persistent demand mean rents could stay elevated even if the broader economy cools . RBC notes that households are still spending around a quarter to a third of their income on rent, and homeowners renewing mortgages at higher rates may cut spending elsewhere, potentially reducing rental demand . However, without a significant increase in rental housing supply, affordability is unlikely to improve much .
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