A recent report from Rentals.ca and Urbanation indicates that average rents in Canada have fallen to a 33-month low in February 2023, experiencing a decline for 17 consecutive months. The average asking rent across all property types is now $2,030, demonstrating a significant 1.3% decrease from January. This marks the most substantial drop for February since 2020.

Moreover, the report highlights a notable trend where, for the first time in six years, many Canadians are now spending less than 30% of their income on rent, which is considered the industry standard for affordability. In February, rental costs represented only 29% of household income for renters, showcasing an improvement in affordability overall.

The report strategically points out that larger rental markets, particularly in Toronto, are facing the steepest declines in rents. In Toronto, rents dropped by 7.9% compared to the same time last year, with one-bedroom units seeing a decline of 6.9%, thus signifying a broader trend of decreasing rental costs that could influence housing policy and the rental market dynamics going forward.