The average asking rent for residential properties across Canada fell 2.0 per cent in January to $2,057, according to the latest National Rent Report from Rentals.ca and Urbanation. Rents have now reached their lowest level in 31 months and sit 6.3 per cent below where they were two years ago, though they remain 12.9 per cent higher than in January 2020, before the pandemic.

“There has been a meaningful improvement in affordability for renters in Canada, proving that more supply brings down costs,” said Shaun Hildebrand, President of Urbanation. “This should help draw more renters into the market this year, even as the population slows.”

Shrinking unit sizes have played a notable role in the downward pressure on average rents. The typical rental listing measured 857 square feet in January, down from 885 square feet a year earlier. On a per‑square‑foot basis, however, rents rose 1.4 per cent annually to $2.46, indicating that pricing pressures persist despite lower headline rents.

Improving affordability was also reflected in renters’ financial burden. The average rent‑to‑income ratio dipped below 30 per cent for the first time in six years, reaching 29.5 per cent—its lowest level since before the pandemic.

All six of Canada’s largest rental markets recorded annual rent declines in January. Vancouver apartment rents dropped 9.2 per cent to $2,630, the lowest since February 2022. Calgary saw a 5.7 per cent decrease to $1,815, a three‑year low, while Toronto rents fell 4.6 per cent to $2,495, the lowest level in 44 months. Ottawa (-4.8%), Montreal (-3.7%), and Edmonton (-2.6%) also posted declines, though Edmonton rents remain nearly 18 per cent higher than three years ago.

Secondary market units led the national downturn. Condo rents fell 5.7 per cent year‑over‑year to $2,093, while other secondary units declined 3.1 per cent to $2,078. Purpose‑built rentals proved most resilient, slipping just 1.0 per cent to $2,049. Among unit types, three‑bedroom apartments were the only category to see growth, rising 1.1 per cent to an average of $2,506.

At the provincial level, the steepest annual declines occurred in British Columbia (-4.7%), Alberta (-4.3%), Ontario (-3.3%), and Quebec (-2.6%). Ontario recorded the largest two‑year drop at 8.3 per cent, while B.C. rents have fallen the most compared to three years ago. Saskatchewan remained the national outlier, with apartment rents rising 4.6 per cent annually and holding the title of most affordable province at $1,371.