For the fifth consecutive month, average asking rents in Canada have dropped year-over-year, hitting their lowest level since July 2023.
According to the latest Rentals.ca and Urbanation report, February saw a 4.8 per cent decline in rents compared to the previous year, bringing the national average to $2,088.
“Rents in Canada are softening as supply is outweighing demand,” said Shaun Hildebrand, president of Urbanation. “Apartment completions are currently running at record highs, while at the same time, population growth has slowed and the economy faces heightened risks due to a potential trade war with the U.S. Expect rents to continue decreasing in the near-term as these trends likely remain in place.”
This downward trend marks a stark reversal from just a year ago, when rents were rising by double digits. In February 2024, asking rents had jumped 10.5 per cent annually. Now, with rents down $105 per month compared to a year ago, tenants are seeing some relief. The report notes that average rents are still up 5.2 per cent compared to two years ago and average asking rents remain $302 per month higher than they were five years ago.
Condo rents see steep declines
One of the most notable drops has been in the condo rental market. Average asking rents for condo apartments fell 7.6 per cent year-over-year, reaching a 26-month low of $2,192. Studios and one-bedroom condos saw the steepest declines, down 10 per cent and 8.8 per cent, respectively. Two-bedroom units followed closely behind, with a 7.6 per cent drop to an average of $2,323. Even three-bedroom condos, which tend to be in high demand, saw a 3.5 per cent decrease to $2,757.
Meanwhile, purpose-built apartments experienced a more moderate 1.9 per cent annual rent decline, averaging $2,070.
Where rents have dropped the most
Across Canada, several major rental markets saw prices decline over the past year. In Vancouver, one-bedroom rents fell by 5.1 per cent, while Toronto saw a similar drop of 5.4 per cent. Calgary experienced one of the most significant declines, with one-bedroom rents plummeting 7.5 per cent year-over-year.
Other Ontario cities also saw dips between 3 per cent and 4 per cent, including Mississauga, Brampton, and North York. However, some markets bucked the trend, such as Guelph and Halifax where rents jumped about 5 per cent.
