Affordability pressures are beginning to ease for Canadian renter households as rent growth slows across many markets, according to a new analysis from Rentals.ca and Urbanation. Using CMHC’s affordability benchmark of 30 per cent of pre-tax household income, and average asking rent data generated from the platform, the analysis finds that the share of median renter household income required to afford rent has declined from peak levels reached back in 2022 and 2023.
Although rents remain historically high and many households continue to feel stretched, the gap between renter incomes and asking rents has narrowed meaningfully in several major cities.
“Affordability can worsen quickly, and take time to recover,” said David Aizikov, Manager of Data Services at Rentals.ca. “While not all markets are moving at the same pace, recent trends in rent growth and income gains suggest conditions are stabilizing relative to the peak.”
Of Canada’s major rental markets, Vancouver has seen one of the most notable improvements. Average asking rents in the city peaked at 42.4 per cent of median renter income in June 2023 before dropping to 32.3 per cent by October 2025—a 10‑percentage‑point improvement. Over the same period, average asking rents declined by roughly $566 per month, from $3,304 at their peak to $2,738.
Toronto has experienced a similar shift. After reaching a high of 38.1 per cent in November 2022, the share of income required for average asking rents fell to 29.8 per cent by October 2025. Average rents decreased by about $337 per month, from $2,896 at peak levels to $2,559.
Montreal’s affordability has also improved. In October 2025, average asking rents represented 30.3 per cent of renter income, down from 34.2 per cent in October 2023. Average rents declined by approximately $95 per month, from a peak of $2,052 to $1,957.
Meanwhile in Alberta’s largest cities, affordability conditions remain comparatively strong. By October 2025, average asking rents accounted for just 23.2 per cent of renter income in both Calgary and Edmonton. Calgary’s average rents have fallen by about $320 per month since their September 2023 peak, while Edmonton saw a more modest decline of roughly $88 per month from its September 2024 high.
