Average asking rent drops in Vancouver, but remains highest in Canada: report

What is behind the latest drop in Vancouver rent? CTV News' Kraig Krause says Vancouver has seen a 7 per cent overall drop in rental prices due to new construction.

Vancouver and Burnaby have topped a ranking of the most expensive places to find rental housing in Canada.

New data from Rentals.ca for July shows the two cities each had an average asking rent of well above $2,500 a month for a one-bedroom.

The average in Vancouver was $2,761 while Burnaby sat at $2,566, according to the report.

Despite Vancouver being the priciest city in the country for new renters, the average for a one-bedroom was down 8.4 per cent year-over-year. Burnaby's average increased by one per cent.

Rounding out the top 10 were Victoria and Kelowna, both of which saw year-over-year spikes for one-bedroom units. Kelowna experienced a 12 per cent decline for two-bedroom units, however, resulting in an average asking rent of $2,452.

The data from Rentals.ca and Urbanation shows asking rents for all residential property types in Canada averaged $2,201 in July, up 5.9 per cent from last year.

The report said this year-over-year increase is the slowest rise since early 2022.

The recent increases have been seen more in smaller markets, while major cities have felt some annual price retreat as a wave of condo completions come on the rental market.

Another factor is believed to be the federal government rolling out some measures to try and combat rent increases, including a cap on international student enrolments and funding to build more rental supply.

With files from The Canadian Press