Canada’s Average Rent Falls to Lowest Level in Two-and-a-Half Years

The average asking rent for all residential properties in Canada declined 2.3% year-over-year in December to $2,060, marking the 15th consecutive month of annual rent decreases, according to the latest National Rent Report from Rentals.ca and Urbanation. Rents fell to their lowest level in 30 months, down 5.4% compared to two years ago. Despite the extended decline, average asking rents remained 14.1% higher than pre-pandemic levels in December 2019.

“After a sharp run-up coming out of COVID, rents in Canada have been on a downward trend for more than a year. The demand and supply factors that were pushing rents higher between 2022 and 2024 reversed during 2025. A combination of record-high apartment completions, population growth slowing down, economic uncertainty, and affordability challenges has worked together to push down rents. Looking ahead, rents are likely to continue trending down in the near-term as these conditions persist,” said Shaun Hildebrand, President of Urbanation.

When measured across the full year, average asking rents in Canada declined 3.1% in 2025, representing a larger annual drop than those recorded during the COVID-19 pandemic. While rents fell last year, rent growth since 2020 has remained in line with the long-term historical average at 2.9% per year.

Rent declines continued to be led by secondary market units. Purpose-built rental apartments remained the most stable segment, posting a modest 1.0% annual decline to an average of $2,049. Among unit types, three-bedroom rents edged up 0.2% year-over-year to $2,501, while one-bedroom and two-bedroom rents declined 3.1% and 1.6%, respectively. Condo rents fell 4.0% annually in December to an average of $2,131.

At the provincial level, average apartment rents declined year-over-year in B.C. (-5.4%), Ontario (-3.2%), Alberta (-2.7%), and Quebec (-1.9%). Apartment rents in both B.C. and Ontario were down nearly 10% compared to two years ago. Saskatchewan continued to lead rent growth nationally, with apartment rents rising 7.1% annually and remaining more than 30% below the national average.

Among Canada’s six largest markets, annual rent declines remained steepest in Vancouver (-7.9% to $2,654), Toronto (-5.1% to $2,498), and Calgary (-5.0% to $1,824). Vancouver and Toronto rents fell to their lowest levels since early 2022, with two-year declines of 13.3% and 11.8%, respectively. Edmonton was the only major market to record rent growth in December, rising 0.8% year-over-year for apartment rentals.
The average asking rent for shared accommodations across B.C., Alberta, Ontario, and Quebec declined 8.5% annually in December to $902, reaching a 34-month low.

The data includes single-detached homes, semi-detached homes, townhouses, condominium apartments, rental apartments, and basement apartments. Outlier listings and single-room rentals are excluded.

Giacomo Ladas – giacomo@rentals.ca

Shaun Hildebrand – shaun@urbanation.ca