National rent declines slow
04-Sep-2026.
The average asking rent for all residential properties in Canada fell 4.0 per cent year-over-year in July to $2,037, marking the 22nd consecutive month of annual rent decreases, according to the latest National Rent Report from Rentals.ca and Urbanation.
The report found that the pace of decline continued to ease, marking the smallest annual decline since February 2026. Rents were up 0.2 per cent month-over-month in July, a fourth consecutive monthly increase since asking rents hit a 35-month low earlier this year. Over the past two years, rents have declined 7.5 per cent, falling to their lowest July level since 2022.
According to the report, purpose-built rentals remained the most resilient segment of the market, with asking rents declining 2.6 per cent annually to an average of $2,041, while three-bedroom purpose-built rents were essentially flat year-over-year. Condo rents fell 6.3 per cent year-over-year to $2,063, led by a 9.6 per cent annual decline in studio condo rents, while houses and townhomes saw the steepest annual decline among property types, down 7.5 per cent to $2,007.
Nationwide, the average asking rent for purpose-built and condominium apartments was $2,043 in July, up 0.3 per cent from June. At the provincial level, Ontario recorded the largest monthly rent increase in the country, up 0.6 per cent for all property types and 0.8 per cent for purpose-built and condo apartments, with smaller monthly gains also seen in British Columbia and Alberta, while Saskatchewan and Manitoba, the two provinces that had led rent growth over the past year, both slipped on a monthly basis.
The report revealed that annual apartment and condo rent declines remained concentrated in Canada’s largest provinces, led by Alberta, at 4.3 per cent, British Columbia, at 4.1 per cent, and Ontario, at 3.7 per cent, while Nova Scotia, at 4.5 per cent, and Manitoba, at 1.5 per cent, continued to post annual increases.
Nova Scotia, at $2,377, remained the most expensive province in the country for apartment and condo rents, edging out British Columbia, at $2,357, for a third consecutive month. The report noted that the gap is driven in part by a large number of high-priced listings in recently completed buildings still in lease-up, as well as a larger average unit size: two-bedroom-plus units made up 52 per cent of Nova Scotia’s rental market in July, compared to 43 per cent in B.C.
Rents rose month-over-month in three of Canada’s six largest markets in July, led by Toronto, up 1.6 per cent to $2,577, followed by Calgary, up 0.5 per cent, and Edmonton, up 0.1 per cent, while Vancouver, down 1.4 per cent, and Montreal, down 0.4 per cent, saw rents move lower and Ottawa was roughly flat, down 0.2 per cent.
The increase marked Toronto’s fourth consecutive monthly gain, leaving annual rents down just 0.6 per cent, the smallest annual decline among the six largest markets and a further signal of a potential turnaround, with listings down roughly 6 per cent year-over-year, pointing to a tightening supply picture. Calgary, down 4.5 per cent, and Vancouver, down 4.5 per cent, recorded the largest annual declines among the six largest markets, followed by Edmonton, down 3.6 per cent, while Montreal, down 1.6 per cent, and Ottawa, down 2.4 per cent, were more resilient.
Double-digit rent movements outside the six largest markets remained concentrated in a handful of areas in July. Dartmouth, up 13.1 per cent, recorded the largest annual increase in the country, with notable gains also seen in Lloydminster, up 11.3 per cent, Welland, up 6.9 per cent, and North York, up 5.1 per cent.
Double-digit declines continued to be concentrated in markets adjacent to Quebec and Ontario’s largest centres, led by Côte Saint-Luc, down 12.9 per cent, Abbotsford, down 12.4 per cent, Markham, down 11.9 per cent, and Longueuil, down 10.9 per cent.
