In September, the average rental unit asking price in Canada dropped by 4.2% year-over-year to $2,034, according to a recent report by Rentals.ca and Urbanation. This marks a two-year trend of annual declines, the longest in recent Canadian rental market history. Average rent prices fell by 7.3% over the past two years and are now 9.2% lower than the peak of $2,202 in May 2024.
Statistics Canada data highlighted in the report shows a 19.4% increase in average weekly earnings over the past five years, indicating an improvement in rental affordability. Monthly rents decreased slightly by $1 from August, continuing a seasonal trend where demand typically rises in spring and summer before easing in the fall.
Year-over-year, average rents across all property segments dropped by 4.8% in Ontario, 2.9% in British Columbia, 2.6% in Alberta, and 1.7% in Quebec. Conversely, Nova Scotia and Saskatchewan saw increases of 1.4%. On a per-square-foot basis, the average asking rents in Canada’s major markets averaged $2.48, showing a 1.5% decline from September 2025.
Purpose-built apartment rents decreased by 2.7% annually to an average of $2,036 in September, while condominium apartment rents fell by 7.8% to $2,052. The smallest annual decline was seen in purpose-built apartment rents, while condo rents experienced the steepest drops, particularly with studio condos seeing a 9.6% decrease.
The rental markets in Toronto and Vancouver are stabilizing after reaching a five-year low in rents, according to the report. Urbanation president Shaun Hildebrand noted that new supply in key markets is surpassing its peak, leading to a correction in rents. The report suggests that Toronto and Vancouver may see a return to positive rent growth soon, as factors like declining construction inventory, modest population growth, and lower exposure to labor market tariffs provide support. Additionally, more affordable rents and move-in incentives are driving pent-up demand from delayed household formations.
