The average asking rent for all residential properties in Canada fell to $2,088 in February, marking a 4.8 per cent annual decline. According to Rentals.ca and Urbanation, this is the largest drop since April 2021 and the fifth consecutive month of year-over-year rent decreases. That said, despite recent declines, rents remain 5.2 per cent higher than two years ago and 16.9 per cent above pre-pandemic levels.
“Rents in Canada are softening as supply is outweighing demand,” said Shaun Hildebrand, President of Urbanation. “Apartment completions are currently running at record highs, while at the same time, population growth has slowed and the economy faces heightened risks due to a potential trade war with the U.S. Expect rents to continue decreasing in the near-term as these trends likely remain in place.”
Data from the latest Rent Report indicates average asking rents in Canada have decreased by $105 per month since February 2024. In contrast, rents rose by $209 per month from February 2023 to February 2024. Despite the recent decline, average asking rents remain $302 per month higher than they were five years ago.
Apartment rents in Canada decreased 2.9 per cent annually to an average of $2,084, with Ontario seeing the sharpest decline (-4.2% to $2,329), followed by British Columbia (-1.0% to $2,457) and Quebec (-0.6% to $2,329). Rents increased in Alberta (+1.4% to $1,732) and Nova Scotia (+1.2% to $2,171), while Saskatchewan (+5.2% to $1,329) and Manitoba (+3.4% to $1,606) recorded the strongest rent growth.
Among major cities, Calgary posted the largest annual rent decline for apartments (-7.0% to $1,916), followed by Toronto (-6.7% to $2,615) and Vancouver (-4.8% to $2,870). Toronto’s average rent remained unchanged month-over-month, holding at a two-and-a-half-year low. Rents fell across all unit types in Toronto, Vancouver, and Calgary, with the steepest declines for studio and one-bedroom apartments.
Ontario continued to dominate both the most expensive and most affordable rental markets. Oakville was Canada’s second most expensive market ($2,829), while Windsor ($1,620), Welland ($1,726), and Chatham-Kent ($1,787) ranked among the most affordable.
Quebec City led rent increases among mid-sized markets, rising 12.3% year-over-year, followed by Oakville (+12.1%) and Saskatoon (+10.3%). Meanwhile, Cote Saint-Luc (-18.2%) recorded the largest rent decline, with Kingston (-10.9%) and Windsor (-6.1%) seeing notable drops.
The shared rental market also experienced a slowdown, with listings declining 29 per cent from January. Shared accommodation rents fell 8.2 per cent in Toronto to $1,176 and 8.0 per cent in Montreal to $870.
