The average rent for vacant units across Canada fell 2.8 per cent year-over-year in February to $2,030, marking the 17th straight month of annual declines, according to the latest National Rent Report from Rentals.ca and Urbanation. Asking rents reached their lowest level in 33 months and were 7.4 per cent below levels recorded two years ago, though still 2.3 per cent higher than three years ago.
“Canada is undergoing its largest downturn in rents in recent history,” said Shaun Hildebrand, President of Urbanation. “The supply that everyone has been waiting so long for has arrived at a time when demand has slowed, creating a rare opportunity for renters to take advantage of better affordability.”
February’s seasonal slowdown was sharper than usual, with asking rents declining 1.3 per cent month-over-month—the steepest February drop since 2020. Despite the national decrease, several major markets, including Vancouver, Ottawa, Calgary, Edmonton, and Montreal, posted modest monthly gains.
Improving affordability has been supported by the combination of lower rents and moderate wage growth. In February, the average rent accounted for 29 per cent of renter household income, dipping below the industry’s 30 per cent affordability benchmark for the first time in more than six years.
The secondary market continued to lead the downturn. Condo rents fell 5.1 per cent annually to an average of $2,082, while other secondary units declined 4.5 per cent to $2,009. Purpose-built rentals remained the most resilient segment, with average rents down 1.9 per cent year-over-year to $2,030. Among all property types, one-bedroom units saw the largest annual decrease, falling 3.5 per cent to $1,781. Three-bedroom units were the only category to record growth, rising 0.6 per cent to $2,486.
At the provincial level, rent declines were concentrated in Canada’s largest markets. Average apartment rents fell 4.4 per cent in Alberta, 4.3 per cent in Ontario, and 4.2 per cent in British Columbia, while Quebec recorded a 3.1 per cent annual drop. Saskatchewan was the only province to post notable growth, with average rents rising 3.3 per cent year-over-year to $1,373.
Among the country’s six largest rental markets, average apartment rents declined year-over-year across all cities. Toronto recorded the steepest declines for most unit types, with studio rents down 7.9 per cent, one-bedrooms down 6.9 per cent, and two-bedrooms down 7.1 per cent. Vancouver saw the largest drop for three-bedroom units at 8.8 per cent. Despite annual decreases, most major markets experienced slight month-over-month increases, led by Vancouver (+1.3%), Ottawa (+1.1%), Montreal (+0.7%), Calgary (+0.1%), and Edmonton (+0.9%).
The average asking rent for shared accommodations across British Columbia, Alberta, Ontario, and Quebec fell 6.6 per cent year-over-year in February to $900. Shared rents declined most sharply in British Columbia (-10.1%) and Ontario (-8.3%), while Ottawa (+5.6%) and Edmonton (+2.0%) recorded increases.
