Rents Down 3 Per cent from 2024 Peak

18-Jun-2025

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According to the latest National Rent Report from Rentals.ca and Urbanation, the average asking rent for all residential properties in Canada reached $2,129 in May, holding steady from April with only a 0.1 per cent monthly increase.

On an annual basis, rents declined 3.3 per cent, the eighth consecutive month of year-over-year decreases, following a record high of $2,202 in May 2024.

“The easing in rents this year across most parts of the country is a positive for housing affordability in Canada following a period of extremely strong rent inflation lasting from 2022 to 2024,” said Shaun Hildebrand, president of Urbanation. “Rents have recently been impacted by the combination of a surge in supply from new apartment completions, as well as a slowdown in population growth and a heightened level of economic uncertainty.”

Despite the year-over-year decline, the report revealed that average asking rents remain 5.7 per cent higher than two years ago and 12.6 per cent above levels from three years ago. Over the past five years, rents in Canada have increased by an average of 4.1 per cent annually, outpacing average wage growth of roughly 3 per cent.

Condo rentals posted the strongest monthly growth in May, increasing 0.8 per cent to $2,192. House and townhome rentals rose 0.3 per cent to $2,196, while purpose-built rentals edged down 0.1 per cent to $2,117. On an annual basis, purpose-built rentals decreased 2.0 per cent, while house/townhome and condo rents fell 7.0 per cent and 3.6 per cent, respectively.

Three-bedroom purpose-built apartments remained the strongest performing segment, according to the report, with rents increasing 3.9 per cent year-over-year to $2,743. In the condo segment, three-bedroom rents declined only 0.8 per cent, while studios experienced the largest annual decline, down 5.1 per cent to $1,762.

Saskatchewan led provincial annual rent growth at 3.9 per cent, followed by Nova Scotia and Manitoba. Ontario and B.C. continued to post the highest rents despite annual declines of 3.6 per cent and 2.6 per cent, respectively. Alberta and Quebec also saw rent decreases in comparison to last year.

Among Canada’s largest cities, Calgary experienced the steepest annual decline in apartment rents, followed by Toronto, Vancouver, and Montreal. Ottawa and Edmonton were the only major cities to post annual increases. Ottawa was the only city to record annual rent growth across all unit types.

The average asking rent for shared accommodations declined 4.7 per cent annually to $945 in May. Shared rents fell in all four tracked provinces, with the largest drop in Quebec. Among major cities, Vancouver and Montreal posted the sharpest annual declines, while Ottawa and Edmonton recorded gains.