Rental market cooling after three years of growth in Burlington, Oakville, Milton

The slowdown of the real estate market is starting to be felt in rentals as well in Burlington, Oakville, Milton and Halton Hills.

According to the June National Rent Report from Rentals.ca and Urbanation, the average ask for rental properties decreased by 0.8 per cent from May, and the annual growth slowed to seven per cent, year-over-year, the slowest annual growth rate in 13 months.

The monthly-rate decline marks the largest on a month-over-month basis since early 2021 during the COVID-19 pandemic, and reversing the typical seasonal trend of rising rents at this time of year.

“Rents at the national level are clearly levelling out,” said Shaun Hildebrand, president of Urbanation. “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.”

Rents for purpose-built and condominium rental apartments fell by one per cent in June from the previous month, averaging $2,146. Year-over-year, apartment rents increased by nine per cent, driven by an 11 per cent rise in purpose-built rental rates, which now average $2,121.

In contrast, condominium apartment rents saw a 2.6 per cent increase, averaging $2,320. In addition, studio rents for condominiums dropped by 5.1 per cent annually to $1,823, while purpose-built studio rents surged by 14.6 per cent to $1,613.

Burlington is the only Halton municipality specifically referenced in this month’s report. The average one-bedroom home is going for $2,196, which is the same as May and down 0.9 per cent, year-over-year. For a two-bedroom, the average is $2,605, down 0.4 per cent from June and up 1.2 per cent, year-over-year.

In major markets across the country, rent is dropping significantly.

Toronto rents fell to a 22-month low, with average rents for purpose-built and condominium units declining by 2.5 per cent monthly and 3.5 per cent annually to $2,715. Vancouver saw a 1.1 per cent monthly increase but a 7.8 per cent annual decrease, bringing the average rent to $3,042. Edmonton experienced the highest rent growth among major cities, with a 14.3 per cent annual increase to $1,564, while Calgary’s rents grew by 4.2 per cent to $2,092. Montreal’s rents grew by 4.3 per cent to $2,013, and Ottawa saw a slight increase of 1.5 per cent to $2,179.

Across Ontario, rents for purpose-built and condominium apartments decreased by 1.7 per cent from May to June and fell by 1.3 per cent annually to $2,382.