With spacious units and population growth, N.S. surpasses B.C. for highest average asking rent: Urbanation

Nova Scotia has overtaken British Columbia as Canada’s highest average asking rent for purpose-built apartment and condominium rentals, according to the latest National Rent Report from Rentals.ca and Urbanation.

The province recorded an average asking rent of $2,343 in May across all apartment and condominium unit types, up 2.6 per cent from a year earlier and ahead of British Columbia’s average of $2,328.

The report attributes the shift partly to rising rents in Nova Scotia and declining rents in British Columbia, but notes differences in the mix of available rental units also played a role.

Studio and one-bedroom apartments accounted for 57 per cent of listings in British Columbia, compared with 48 per cent in Nova Scotia, where larger two- and three-bedroom units made up a greater share of available inventory.

Despite posting the highest overall average asking rent, Nova Scotia remained more affordable than British Columbia for all unit types except studios. The province’s growing supply of newly built rental housing also contributed to higher average asking rents.

National rental market trends

Average asking rent in Canada declined 4.7 per cent year over year in May, falling by $100 to $2,029. The decrease marked the 20th consecutive month of annual rent declines.

Average rents for all unit types continued to fall across Canada’s most populous provinces, declining 6.0 per cent in Ontario, 5.7 per cent in British Columbia, 3.9 per cent in Alberta and 1.8 per cent in Quebec. In contrast, rents increased 2.3 per cent in both Nova Scotia and Saskatchewan, while Manitoba recorded a 0.6 per cent annual increase.

On a monthly basis, average asking rents edged up 0.1 per cent from April, well below the average May increase of 1.3 per cent recorded over the previous five years.

Despite the recent cooling, rents remain 22.1 per cent higher than their pandemic-era low of $1,662 in April 2021. However, the national average is now 7.8 per cent below the record high of $2,202 reached in May 2024.

Larger units hold their value

Rent declines were most pronounced in the condominium market, particularly among smaller units.

Studio condominium apartments posted the steepest annual decline of any category, with asking rents falling 8.9 per cent year over year to $1,605 and 2.1 per cent from April.

Among purpose-built rental apartments, one-bedroom units recorded the largest annual decrease, with asking rents falling 3.9 per cent to $1,812.

Demand for larger purpose-built rental units remained comparatively strong. Asking rents for three-bedroom purpose-built apartments were nearly unchanged from a year earlier, declining just 0.5 per cent to $2,729.

Three-bedroom condominium units also outperformed many other segments, with asking rents falling 5.3 per cent year over year to $2,741 while edging up 0.3 per cent from the previous month.

The post With spacious units and population growth, N.S. surpasses B.C. for highest average asking rent: Urbanation appeared first on REM.