As the average asking price for an apartment in Canada continues to hit new highs, data suggests prices dropped in Toronto last month year-over-year, albeit only less than one per cent.

According to the latest rental price report by and Urbanation, average asking rents in Canada’s biggest city declined by 0.8 per cent to $2,908 in October, compared to last year.

The drop marks the first annual rent decrease seen in the city since August of 2021, the report showed.

Despite the marginal discount, Toronto remains the second-most expensive big city in Canada to rent an apartment, according to the report. In October, a one-bedroom went for $2,607 and a two-bedroom went for $3,424.

The drop appears to be driven by the demand for three-bedroom units, the price of which declined 3.4 per cent in October year-over-year. All other apartment types in the city, including bachelor units, saw an increase in value over the same time frame.

Based on October’s numbers, six of the 10 most expensive rental markets in Canada were located in Ontario, the report said. Oakville sits in fourth place with an average asking rental price of $3,008. Meanwhile, the average monthly rent cost in Vaughan and Mississauga is $2,754 and $2,700, respectively.

Last month, said the average asking price for a rental unit in Toronto was only up 2.3 per cent year-over-year in September, which marked the slowest rate of growth for rental prices in the city in two years. For context, the average asking rental price in September of 2022 was up 8.7 per cent from the previous year.

Across Canada, the average asking price for a rental unit reached $2,178 in October, a 9.9 per cent year-over-year increase. This continued a trend that has seen asking rents hit new highs for six months in a row.

The findings show while October's annual rate of rent growth in Canada was down from the 11.1 per cent jump in September, it still marked the second fastest annual increase of the past seven months.

“I get asked all the time, 'How are people affording this?' The answer is they're not,” said spokesman Giacomo Ladas told The Canadian Press in an interview.

“Rents are getting so high to the point where people are almost out of options. They're looking desperately to find more affordable rents.”

With files from The Canadian Press