It's a good time to be a renter in Saskatoon.

According to a new study from Colliers International, rents have dropped $150 per month on average.

"There's been more supply than there has been demand, which has caused landlords to react," Tom McClocklin, president of Saskatchewan Colliers International, told CBC Radio's Saskatoon Morning.

For years, during the height of Saskatchewan's economic boom, vacancy rates were the lowest in Canada, sitting at roughly two per cent.

However, a cooling economy, combined with new construction, has caused vacancy rates to spike to approximately 13 per cent.

That means landlords are busy competing for new tenants.

"For many years, renters didn't have options in Saskatoon," said McClocklin. "It's causing landlords of current buildings to reinvest in those buildings, to upgrade them."

He said many landlords are offering incentives to prospective tenants — from three months of free rent to lower security deposits.

McClocklin believes that the situation is already reversing itself, and the vacancy rate should drop in the next few years.

"I think we're seeing a bottom of the market, when it comes to rental rates," he said. "I think they've come down to reflect the market."

He said Saskatoon likely won't see many new apartment buildings built until vacancy rates hit four or five per cent, giving investors a better return for their money.