Asking Rents in Canada Drop to 18-Month Low: Report

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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 fell to $2,100, an average annual decrease of $96 in January, marking a 4.4 per cent annual decline as well as reaching an 18-month low.

This is the fourth consecutive month of annual rent decreases, following 38 straight months of annual rent increases. Despite the recent declines, average asking rents remain 5.2 per cent higher than two years ago and 16.4 per cent above levels recorded three years ago.

“The downward trend for rents in Canada accelerated during the first month of 2025. Heightened downside risks for the economy, combined with declining international population inflows and multi-decade highs for apartment completions, suggest rents will continue to weaken in the months ahead. This will result in improved affordability for renters,” said Shaun Hildebrand, president of Urbanation.

Much of the decline was concentrated in the secondary rental market, where asking rents for condominium apartments fell 6.5 per cent year-over-year to an average of $2,219, while rents for houses and townhomes dropped 8.9 per cent to $2,144.

Purpose-built rental apartments saw a smaller decrease of 1.7 per cent. Studio and three-bedroom purpose-built apartments remained in high demand, with rents increasing 0.5 per cent and 2.1 per cent year-over-year, respectively.

The Province of Ontario saw the steepest rent declines, with apartment rents falling 5.2 per cent annually to an average of $2,329 in January. Despite a 2.6 per cent decrease over the past year, British Columbia remained Canada’s most expensive rental market, with average asking rents for purpose-built and condominium apartments of $2,463.

Other provinces had mixed results, with Nova Scotia rents down 0.7 per cent year-over-year to $2,195, and Quebec remaining stable with a 0.4 per cent annual increase to $1,966. Alberta, Saskatchewan, and Manitoba saw 2 to 3 per cent annual rent increases, which reflects continued demand in these more affordable markets.

Toronto recorded the largest rent decline, with apartment rents dropping 7.6 per cent annually to $2,615, reaching a 30-month low. Calgary also experienced a decrease, with rents down 6.0 per cent to $1,925. In Vancouver, where rents have now fallen for 14 consecutive months, the average asking rent declined 5.2 per cent year-over-year to $2,896. Vancouver’s rents have fallen by a total of 13 per cent, equating to a $443 monthly reduction, since reaching a peak of $3,340 in July 2023.

The downward trend in rents was clear across most unit types, particularly in Toronto and Vancouver, where two-bedroom apartment rents declined 8.1 per cent and 7.0 per cent, respectively. Calgary saw the largest decline in three-bedroom apartment rents, down 8.7 per cent to $2,412. Montreal was the only major city to record an increase for this unit type, rising 5.8 per cent to $2,771.

The report noted that growing supply of shared accommodations contributed to a sharp decline in roommate rents. Listings for shared housing increased 42 per cent year-over-year in January, which was primarily driven by growth in Calgary. As a result, the national average asking rent for shared units fell 7.6 per cent annually to $933, the lowest level in 18 months. Alberta and Ontario saw the largest declines, with average roommate rents dropping 2.7 per cent and 2.6 per cent year-over-year, respectively.