Rent Trends in Canada: A Year of Declines

In an unprecedented trend, average asking rents across Canada have seen a consistent decline for the twelfth consecutive month as of September 2025. According to a report by Rentals.ca and Urbanation, the nationwide rent averages fell by 3.2% from the previous year, landing at $2,123. This continuous downturn is reflective of an evolving rental market landscape, marked by fluctuating demand and increasing supply.

A Nationwide Overview

The decline in asking rents was not confined to a single housing type but spanned across various accommodations. Purpose-built apartment rents decreased by 2.1% to average \(2,093, while condominium apartment rents saw a more significant drop of 3%, reaching an average of \)2,226. Meanwhile, the cost for houses and townhomes also fell sharply by 5.5%, marking an average of $2,178.

Regional Variations

The report highlighted notable differences across provinces, with British Columbia (B.C.) and Alberta experiencing the most considerable declines. In B.C., asking rents decreased by 5.5% to an average of \(2,430, while in Alberta, they fell by 4.7%, averaging at \)1,734. Ontario followed suit with a 2.7% reduction to $2,316.

Conversely, Manitoba stood out as the only province where rent prices increased last month, witnessing a rise of 2.6% to average $1,680. This anomaly in an otherwise declining market points towards localized factors influencing rental dynamics within the region.

Major Cities Hit Hard

The downward trajectory was particularly pronounced in Canada’s major cities. Vancouver led with an 8.2% decrease to \(2,776, and Calgary closely followed with a 7.4% drop to \)1,897. Toronto saw a decline of 2.9%, bringing the average rent down to \(2,592, while Edmonton experienced a 2.3% fall to \)1,573.

Analyzing Market Dynamics

Urbanation’s president, Shaun Hildebrand, attributed these trends to an imbalance where new rental supply exceeded demand—a situation likely to reverse as secondary market sources such as condominiums tighten and demand drivers stabilize. This shift heralds potential changes in affordability levels, particularly benefiting renters in high-cost areas like Vancouver and Toronto.

Implications for the Future

The report marks a significant milestone as it signifies the first two-year decline since January 2022. It underscores a pivotal moment in Canada’s rental market, characterized by shifting patterns of supply and demand that could redefine living costs across the nation.

This trend not only reflects current economic conditions but also indicates potential future shifts. As the housing market evolves, stakeholders including renters, investors, and policymakers must navigate these changes to ensure sustainable growth and affordability in Canadian cities.

Original Article Source: Average asking rents drop for 12th straight month to $2,123 in September: report