Canada’s rental market is showing early signs of stabilization, according to the latest National Rent Report from Rentals.ca and Urbanation. While July marked the 22nd straight month of annual rent declines, average asking rents fell 4.0 per cent year‑over‑year to $2,037 — the smallest annual drop since early 2026. Month‑over‑month, rents nudged up 0.2 per cent, extending a four‑month streak of modest gains after hitting a nearly three‑year low this spring.
Over two years, rents have slipped 7.5 per cent, landing at their lowest July level since 2022. But the tone of the market is shifting, with seasonal momentum and tightening supply in key cities hinting at a possible turning point.
“Canada’s rental market is showing signs of stabilizing, but not yet recovering,” said Shaun Hildebrand, President at Urbanation. “While rents have risen for four straight months, this is typical seasonal momentum heading into the back-to-school period, with annual declines persisting across most of the country. Toronto remains the standout, with supply tightening and rents approaching positive annual territory, making it a market worth watching as a potential leading indicator.”
Purpose‑built rentals continued to outperform other housing types, with average asking rents down just 2.6 per cent year‑over‑year to $2,041. Larger units held firm: three‑bedroom purpose‑built rents were essentially unchanged. Condo rents, meanwhile, dropped 6.3 per cent to $2,063, driven by a sharp 9.6 per cent decline in studio units. Houses and townhomes saw the steepest annual pullback, falling 7.5 per cent to $2,007.
Across purpose‑built and condo apartments, the national average reached $2,043 in July, up 0.3 per cent from June. Ontario posted the strongest monthly rise at 0.6 per cent, with British Columbia and Alberta also inching higher. Saskatchewan and Manitoba—leaders in rent growth over the past year—slipped slightly.
Annual declines remained concentrated in the country’s largest provinces, including Alberta (‑4.3%), British Columbia (‑4.1%) and Ontario (‑3.7%). Nova Scotia (+4.5%) and Manitoba (+1.5%) bucked the trend with continued annual increases.
Nova Scotia held its position as the most expensive province for apartment and condo rents at $2,377, edging out B.C. for the third straight month. The premium reflects a wave of high‑priced listings in newly completed buildings and a larger share of bigger units—two‑bedroom‑plus homes accounted for 52 per cent of Nova Scotia’s rental stock in July, compared to 43 per cent in B.C.
In Canada’s largest cities, rents climbed in Toronto (+1.6% to $2,577), Calgary (+0.5%) and Edmonton (+0.1%), while Vancouver (‑1.4%) and Montreal (‑0.4%) moved lower and Ottawa held steady (‑0.2%). Toronto’s fourth consecutive monthly increase left annual rents down just 0.6 per cent, the smallest decline among major markets. Listings fell roughly 6 per centy year‑over‑year, pointing to tightening supply and a potential shift toward growth.
Calgary and Vancouver recorded the largest annual declines (‑4.5% each), followed by Edmonton (‑3.6%). Montreal (‑1.6%) and Ottawa (‑2.4%) were comparatively more stable.
Outside the major centres, volatility persisted. Dartmouth posted the country’s largest annual increase (+13.1%), with notable gains in Lloydminster (+11.3%), Welland (+6.9%) and North York (+5.1%). Double‑digit declines clustered around markets adjacent to Quebec and Ontario’s largest cities, including Côte Saint‑Luc (‑12.9%), Abbotsford (‑12.4%), Markham (‑11.9%) and Longueuil (‑10.9%).
