Rents in Canada Decreased 5% in February, Reaching Lowest Level Since July 2023

Toronto - March 10, 2025 -The average asking rent for all residential properties in Canada fell to $2,088 in February, marking a 4.8% annual decline, the largest since April 2021, according to the latest National Rent Report from Rentals.ca and Urbanation. This is the fifth consecutive month of year-over-year rent decreases, bringing average asking rents to their lowest level since July 2023. Despite recent declines, rents remain 5.2% higher than two years ago and 16.9% above pre-pandemic levels.

“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.”

Average asking rents in Canada have decreased by $105 per month since February 2024. In contrast, rents rose by $209 per month from February 2023 to February 2024. Despite the recent decline, average asking rents remain $302 per month higher than they were five years ago.

Apartment rents in Canada decreased 2.9% annually to an average of $2,084, with Ontario seeing the sharpest decline (-4.2% to $2,329), followed by British Columbia (-1.0% to $2,457) and Quebec (-0.6% to $2,329). Rents increased in Alberta (+1.4% to $1,732) and Nova Scotia (+1.2% to $2,171), while Saskatchewan (+5.2% to $1,329) and Manitoba (+3.4% to $1,606) recorded the strongest rent growth.

Among major cities, Calgary posted the largest annual rent decline for apartments (-7.0% to $1,916), followed by Toronto (-6.7% to $2,615) and Vancouver (-4.8% to $2,870). Toronto’s average rent remained unchanged month-over-month, holding at a two-and-a-half-year low. Rents fell across all unit types in Toronto, Vancouver, and Calgary, with the steepest declines for studio and one-bedroom apartments.

Ontario continued to dominate both the most expensive and most affordable rental markets. Oakville was Canada’s second most expensive market ($2,829), while Windsor ($1,620), Welland ($1,726), and Chatham-Kent ($1,787) ranked among the most affordable.

Quebec City led rent increases among mid-sized markets, rising 12.3% year-over-year, followed by Oakville (+12.1%) and Saskatoon (+10.3%). Meanwhile, Cote Saint-Luc (-18.2%) recorded the largest rent decline, with Kingston (-10.9%) and Windsor (-6.1%) seeing notable drops.

The shared rental market also experienced a slowdown, with listings declining 29% from January. Shared accommodation rents fell 8.2% in Toronto to $1,176 and 8.0% in Montreal to $870.