Asking Rents in Canada Drop to 18-Month Low Amid Continued Market Adjustment

Toronto – February 6, 2025 – The average asking rent for all residential properties in Canada fell to $2,100, an average annual decrease of $96 in January, marking a 4.4% annual decline and reaching an 18-month low, according to the latest National Rent Report from Rentals.ca and Urbanation. This is the fourth consecutive month of annual rent decreases, following 38 straight months of annual rent increases. Despite the recent declines, average asking rents remain 5.2% higher than two years ago and 16.4% above levels recorded three years ago.

“The downward trend for rents in Canada accelerated during the first month of 2025. Heightened downside risks for the economy, combined with declining international population inflows and multi-decade highs for apartment completions, suggest rents will continue to weaken in the months ahead. This will result in improved affordability for renters,” said Shaun Hildebrand, President of Urbanation.

Much of the decline was concentrated in the secondary rental market, where asking rents for condominium apartments fell 6.5% year-over-year to an average of $2,219, while rents for houses and townhomes declined 8.9% to $2,144. Meanwhile, purpose-built rental apartments saw a milder decrease of 1.7%, with some unit types bucking the overall downward trend. Studio and three-bedroom purpose-built apartments remained in high demand, with rents increasing 0.5% and 2.1% year-over-year, respectively.

Ontario saw the steepest rent declines among the provinces, with apartment rents falling 5.2% annually to an average of $2,329 in January. Despite a 2.6% decrease over the past year, British Columbia remained the country’s most expensive rental market, with average asking rents for purpose-built and condominium apartments of $2,463. Other provinces recorded mixed results, with Nova Scotia rents down 0.7% year-over-year to $2,195, while Quebec remained stable with a 0.4% annual increase to $1,966. Meanwhile, Alberta, Saskatchewan, and Manitoba saw 2-3% annual rent increases, reflecting continued demand in these more affordable markets.

Within Canada’s largest rental markets, Toronto recorded the largest rent decline, with apartment rents dropping 7.6% annually to $2,615, reaching a 30-month low. Calgary also experienced a significant decrease, with rents down 6.0% to $1,925. In Vancouver, where rents have now fallen for 14 consecutive months, the average asking rent declined 5.2% year-over-year to $2,896. Since reaching a peak of $3,340 in July 2023, Vancouver’s rents have fallen by a total of 13%, equating to a $443 monthly reduction.

The downward trend in rents was evident across most unit types, particularly in Toronto and Vancouver, where two-bedroom apartment rents declined 8.1% and 7.0%, respectively. Calgary saw the largest decline in three-bedroom apartment rents, down 8.7% to $2,412, while Montreal was the only major city to record an increase for this unit type, rising 5.8% to $2,771.

The growing supply of shared accommodations contributed to a sharp decline in roommate rents. Listings for shared housing increased 42% year-over-year in January, primarily driven by growth in Calgary. As a result, the national average asking rent for shared units fell 7.6% annually to $933, the lowest level in 18 months. Alberta and Ontario saw the largest declines, with average roommate rents dropping 2.7% and 2.6% year-over-year, respectively.