Easing rent declines are beginning to reshape Canada’s rental landscape, with June’s data showing a market that may be stabilizing after a prolonged downturn. Average asking rents fell 4.3 per cent year‑over‑year to $2,033, marking the 21st consecutive month of annual declines, but the rate of decrease continued to moderate following sharper drops earlier in the spring. Month‑over‑month rents edged up 0.2 per cent—the third straight increase since hitting a 35‑month low of $2,008 in March—suggesting momentum is shifting. Over the past two years, rents have fallen 6.9 per cent, reaching their lowest June level in four years, yet recent monthly gains point to a market that may be finding its footing.
“Canada’s rental market continued to show signs of improvement in June, with rents rising for a third straight month and the pace of annual declines easing from earlier in the year,” said Shaun Hildebrand, President at Urbanation. “Toronto’s gradual stabilization could be an early signal that the market is beginning to bottom out this cycle.”
Despite this, affordability pressures remain acute. Nearly three‑quarters of respondents to Rentals.ca’s Spring Survey reported searching for rentals priced at $2,000 or less (below the national average) while 70 per cent cited high rent prices as their biggest challenge.
Purpose‑built rentals continued to outperform other segments, with asking rents declining 3.1 per cent annually to $2,034. Condo rents fell 6.8 per cent year‑over‑year to $2,058, while houses and townhomes dropped 7.4 per cent to $2,017. Within purpose‑built apartments, three‑bedroom units were the most resilient, down just 0.4 per cent to $2,743. Studio condo rents saw the steepest decline among major unit types, falling 9.5 per cent to $1,582.
Provincial trends remained concentrated in Canada’s largest markets. British Columbia (-5.1%), Alberta (-4.8%), and Ontario (-4.6%) posted the sharpest annual declines. Nova Scotia held its position as the most expensive province for purpose‑built and condominium apartments for a second straight month, averaging $2,360—slightly above B.C.’s $2,347—reflecting a higher share of newer, larger units. Nova Scotia (+4.0%) and Manitoba (+1.8%) recorded annual rent increases, while Saskatchewan continued to lead long‑term growth, with apartment rents up 25.6 per cent over three years.
Four of Canada’s six largest markets saw month‑over‑month rent increases in June, led by Ottawa (+1.3% to $2,149) and Toronto (+1.2% to $2,537). Toronto’s gain marked its third consecutive monthly increase since March, suggesting its prolonged stretch of annual declines—now at 29 months—may be nearing an end, with rents down just 1.9 per cent year‑over‑year. Calgary posted the largest annual decline among major markets (-5.6% to $1,820), followed by Vancouver and Edmonton (both -4.1%). Montreal recorded the smallest annual decrease, down 0.8 per cent to $1,949, despite a 0.9 per cent monthly dip.
Double‑digit annual declines in apartment and condo rents remained concentrated in suburban markets surrounding Canada’s largest cities. Longueuil (-13.9%) recorded the steepest drop nationwide, with significant declines also observed in Niagara Falls (-12.5%), Abbotsford (-12.4%), New Westminster (-11.8%), Côte Saint‑Luc (-11.6%), Scarborough (-11.0%), and Markham (-10.2%).
Shared accommodation rents across British Columbia, Alberta, Ontario, and Quebec held steady at $900 in June—unchanged since January but down 4.1 per cent from June 2025 and 9.0 per cent from June 2024. Vancouver posted the largest annual decline among major markets, with shared rents falling 15.5 per cent to $1,099.
