Full Breakdown
Canadian Rental Market Experiences Two-Year Downturn
By Drooid · · How we work
Two-Year Rent Decline Across Canada
Average asking rents for all residential properties fell for the 24th consecutive month, marking the longest sustained decline in recent Canadian rental history. The average rent was $2,034 in September, a 4.2 % drop from the same month a year earlier and the lowest September level since 2022. The trend follows a peak of $2,202 in May 2024 and a high of $2,142 in September 2024.
Data & Statistics
- Overall rent: $2,034 (September) – 4.2 % lower than September 2025.
- Compared with the previous month, rents were 7.3 % below September 2024 levels and 9.2 % below the May 2024 peak.
- Condo rents fell to $2,052, a 7.8 % decline year-over-year; studio condos dropped 9.6 %.
- Houses and townhomes slipped 7.4 % to $2,016.
- Purpose-built rentals were the most resilient, down 2.7 % to $2,036.
These figures come from a joint report by Rentals.ca and Urbanation.
Why It Matters
The sustained decline reflects an oversupply in major markets such as Toronto and Vancouver, which influences rent trends nationwide. Lower rents can ease housing cost pressures for renters but may also signal reduced profitability for landlords and developers, potentially affecting future construction activity and investment decisions.
Official Statements & Responses
Shaun Hildebrand, president of Urbanation, noted that the oversupply in key cities is the primary driver of the downturn. He added that while rents in Toronto and Vancouver have begun to rise over the past six months, the overall annual declines have narrowed as renters re-enter the market, causing other regions to follow the same pattern.
Verbatim Quotes
- “Two straight years of falling rents is the longest downturn the Canadian rental market has seen in recent history,” — Shaun Hildebrand, president of Urbanation
- “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,” — Shaun Hildebrand, president of Urbanation