Rent prices down in Niagara Falls, but up in St. Catharines

While rent is high in many major Canadian cities, Niagara Falls and St. Catharines remain more affordable than other southern Ontario municipalities–and prices appear to be going down a bit in the falls. 

According to the recent National Rent Report by Rentals.ca and Urbanation, rents are still climbing across Canada, but the increases have become less dramatic. Niagara Falls and St. Catharines offer more affordable accommodations than other major Canadian cities, ranking 27th and 25th, respectively, on the list of 31 cities. 

In Niagara Falls, the average monthly rent for a one-bedroom unit hit $1,647 last month–down three per cent from August and down 3.6 per cent from September 2023. The cost for a two-bedroom came in at $2,022–down 0.2 per cent from August and 3.7 per cent from last fall. 

In St. Catharines, the average asking rent for a one-bedroom hit $1,700 last month–up 1.4 per cent from the month before and up 1.6 per cent from September 2023. 

Two-bedroom units cost about $2,013 in the city, up 2.3 per cent month-over-month and almost three per cent year-over-year. 

The two cities are more affordable than Mississauga, Oakville, Burlington, Barrie, Brampton, Guelph, Kitchener, Oshawa, Hamilton and Brantford, but more expensive than Windsor, where a one-bedroom costs about $1,561 a month and a two-bedroom costs $1,829.

The report suggests that the sky-high rent prices that have been making headlines in the aftermath of the pandemic are starting to stabilize, noting that average asking rents for all residential property types in Canada increased by a little over two per cent year-over-year in September, reaching an average of $2,193 per month. While still increasing, the report says last month marked the smallest annual rent growth since October 2021. 

“The annual rate of rent growth has slowed for five consecutive months, significantly down from May’s nine per cent growth,” the report reads. 

That said, the market remains challenging for prospective tenants looking at lower prices just three years ago.

The report says rents remain 13 per cent higher than two years ago and 25 per cent higher than three years ago, showing the pandemic continues to have an impact. The more recent slowdown is, the report says, likely a byproduct of reducing the amount of non-permanent residents (such as international students and temporary foreign workers) who can enter Canada. 

“Rents in Canada are increasing at their slowest pace in nearly three years, largely the result of foreign student enrollments dropping by roughly a half from their record highs, with the impact felt most in B.C. and Ontario,” said Shaun Hildebrand, president of Urbanation, in the report. 

“Meanwhile, smaller, more affordable markets continue to see strong upward pressure on rents as demand shifts to less expensive parts of the country.”