Canada’s average asking rent took another step down in July, the tenth consecutive month for year-over-year decreases.
The national average asking rent last month was $2,121, down $4 from June and $80 from July 2024, according to the latest National Rent Report by Rentals.ca and Urbanation.
“Canada’s rental market is experiencing a prolonged softening phase, with price declines accelerating across most provinces and unit types,” said David Aizikov, manager of data services at Rentals.ca. “With the seasonal peak now behind us, we expect continued downward pressure on rents heading into the fall.”
Rents are still well above 2022 levels
Despite the recent slowdown, average asking rents remain two per cent higher than two years ago and 11 per cent higher than three years ago, according to the report.
Purpose-built rental apartments, in particular, have shown the most stability, with rents increasing seven per cent annually and 23 per cent over the past three years to an average of $2,095, still below the national average and more affordable than condos or houses.
Saskatchewan remained the fastest-growing, yet most affordable, province with average rents up four per cent annually and 32 per cent over three years to just $1,384.
Alberta (+27 per cent) and Manitoba (+22 per cent) followed in growth since 2022.
On the opposite end of the spectrum, Nova Scotia (-5 per cent) and British Columbia (-4.4 per cent) led annual rent declines, while Ontario fell three per cent to $2,325.
Among major markets, Vancouver (-9.6 per cent) and Calgary (-9.3 per cent) posted the largest annual rent declines.
Toronto rents dropped 4.6 per cent to $2,593, while Montreal slipped 1.6 per cent to $1,971.
Ottawa and Edmonton moved into negative territory at -0.9 per cent.
Which unit types saw the biggest declines?
One-bedroom units saw the steepest annual drop in July, decreasing 4.6 per cent, followed by two-bedroom units (-3.5 per cent).
Studio rents declined by just 0.6 per cent, and three-bedroom units fell 1.9 per cent. However, over the last three years, studio rents have outpaced all others with a 19.7 per cent increase.
