Canada’s Average Rent Falls at Fastest Pace since COVID-19 Pandemic: Report

14-Apr-2026

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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 declined 5.3 per cent year-over-year in March to $2,008, marking the 18th consecutive month of annual rent decreases.

Rents fell to their lowest level in 35 months and were down 7.9 per cent compared to two years ago, while remaining relatively flat compared to three years ago.

“The Canadian rental market downturn has deepened, with rents in March falling at their fastest pace since COVID,” said Shaun Hildebrand, president of Urbanation. “This shows in real-time the market impact from the declining population, coupled with ongoing affordability issues, heightened economic uncertainty, and record high apartment completions.”

Asking rents declined 1.1 per cent month-over-month in March, following a 1.3 per cent decrease in February, marking the second consecutive monthly decline of more than 1 per cent. Thr report noted that since peaking in May 2024, rents have fallen by $194, or 8.8 per cent.

Rents continued to fall across all property types, with the largest declines seen in the secondary market. Condo rents dropped 6.9 per cent annually to $2,077, while houses and townhomes fell 9.0 per cent to $1,990. Purpose-built rentals remained stable, declining 3.9 per cent year-over-year to $2,005. One-bedroom rents fell 5.1 per cent to $1,763, while three-bedroom rents declined 3.8 per cent to $2,452.

In terms of a per-square-foot basis, asking rents declined 1.2 per cent annually to $2.49, while the average unit size decreased to 831 square feet, reflecting a continued shift toward smaller rental units.

At the provincial level, rent declines were concentrated in Canada’s largest markets, according to the report. Apartment rents fell 4.8 per cent in British Columbia, 4.6 per cent in Alberta, and 4.4 per cent in Ontario, while Quebec saw a smaller 2.1 per cent decrease.

Rents increased in Nova Scotia, Saskatchewan, and Manitoba, with Saskatchewan continuing to lead long-term growth.

Among Canada’s six largest cities, rents declined across all markets, led by Calgary, while Montreal saw the smallest decrease. Toronto rents fell to a 46-month low, while Vancouver rents remained below levels seen in early 2022 despite recent monthly increases.

The average asking rent for shared accommodations across British Columbia, Alberta, Ontario, and Quebec declined 6.3 per cent annually in March to $899, falling below $900 for the first time in three years.