A monthly report from Rentals.ca and Urbanation said the figures mark two full years of annual declines, the longest downturn the Canadian rental market has experienced in recent history.
Average asking rent prices in September were down 7.3% over the past two years and 9.2% below the peak of $2,202 in May 2024. The report also highlighted figures from Statistics Canada that show average weekly earnings have risen 19.4% over the past five years, signifying a general improvement in rental affordability.
Rents edged slightly lower on a monthly basis, down by $1 compared with $2,035 in August, a second consecutive monthly decrease. The report said this is part of a typical seasonal pattern where demand rises in the spring and summer and begins to ease in the fall.
Average rent for all property segments down across the board in provinces
Across the provinces, average rents for all property segments were down 4.8% year-over-year in Ontario, 2.9% in B.C., 2.6% in Alberta and 1.7% in Quebec. In contrast, other provinces saw increases, including 1.4% rises in both Nova Scotia and Saskatchewan.
On a square foot basis, average asking rents in Canada’s six largest markets came in at $2.48, falling 1.5% from September 2025.
Asking rents for purpose-built apartments fell 2.7% on an annual basis to an average of $2,036 in September, while asking rents for condominium apartments decreased 7.8% to $2,052. Rental prices for purpose-built apartments saw the smallest annual decline across all property types.
Condo rents saw the steepest declines, led by a 9.6% drop in studio condo rents. Other secondary market units like houses and townhomes fell 7.4% year-over-year to $2,016.
Rental markets in Toronto and Vancouver are stabilizing after hitting a five-year low
The report said rental markets in Toronto and Vancouver are showing signs of stability, though after rents hit their lowest level in five years.
“Our research shows supply has been the main driver of this correction, and in key markets like Toronto and Vancouver, new supply is moving past its peak,” Urbanation president Shaun Hildebrand said in a news release.
“Rents in both cities have trended higher over the past six months, and annual declines have narrowed significantly as renters come off the sidelines. Where Toronto and Vancouver go, the rest of the country follows.”
A few factors support an “upcoming return to positive rent growth” in those cities, the report said. This includes the fact that construction inventory has peaked, data revisions show a modest increase in populations, and both cities are relatively less exposed to tariffs across their respective labour markets.
“In the near term, more affordable rents and move-in incentives are releasing pent-up demand from delayed household formation, as higher rents in previous years led to prospective renters living with parents or roommates for longer,” the report said.
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