These 3 Ontario cities just experienced the largest rent declines in all of Canada

New rental data shows that while national rent declines are gradually slowing, several markets right here in Ontario are driving the country's largest year-over-year drops.

According to Zumper's monthly Canadian Rent Report, the country has recorded 18 months of consecutive year-over-year declines, although this year, the rate of those declines has eased up.

Data from the rental marketplace shows that national one-bedroom rent prices declined by 0.1 per cent last month to $1,778, while two-bedroom rent prices increased by 0.2 per cent to $2,202.

The steepest rent drops for one-bedroom apartments in Canada year-over-year were recorded in three Ontario markets: Toronto (-8.3 per cent), Oshawa (-8.2 per cent), and Barrie (-5.4 per cent).

"Many condo investors in Ontario flooded the rental market rather than selling into weak ownership conditions, and a substantial pipeline of new supply was completed just as demand softened," the report reads.

"Toronto and Oshawa reflect the GTA demand unwind, while Barrie's decline signals that the softness has extended into commuter markets that had seen outsized pandemic-era rent growth as renters sought affordability beyond the city centers."

The average rent for one-bedroom units in cities across Canada in March. Photo: Zumper. 

Despite this, some of the country's most expensive real estate markets remained in Ontario, including Toronto, where the average one-bedroom asking rent price was still above the $2,000 mark at $2,110, and the average two-bedroom unit ran for $2,700 per month (-6.9 per cent year-over-year).

"The city's continued cooling reflects reduced immigration to Ontario, a flood of condo units shifting to the rental market, and a significant pipeline of new supply reaching completion," the report continues.

Other Ontario cities, including Hamilton (+1.8%), London (-1.2%), and Ottawa (-1.5%), also recorded modest increases and decreases in rent prices last month.