Toronto – February 9, 2026 – The average asking rent for all residential properties in Canada declined 2.0% year-over-year in January to $2,057, marking the 16th consecutive month of annual rent decreases, according to the latest National Rent Report from Rentals.ca and Urbanation. Rents fell to their lowest level in 31 months and were down 6.3% compared to two years ago, although they remained 12.9% higher than pre-pandemic levels in January 2020.
“There has been a meaningful improvement in affordability for renters in Canada, proving that more supply brings down costs,” said Shaun Hildebrand, President of Urbanation. “This should help draw more renters into the market this year, even as the population slows.”
Shrinking unit sizes have contributed to the decrease in average rents observed over the last two years. The average size of rental listings fell to 857 square feet in January, down from 885 square feet a year ago. On a per-square-foot basis, however, asking rents increased 1.4% annually to an average of $2.46 per square foot, reflecting continued pricing pressure despite lower headline rents.
Lower rents and softer market conditions have contributed to a meaningful improvement in affordability. In January, the average rent-to-income ratio fell below 30% for the first time in six years, reaching 29.5%, the lowest level recorded since before the pandemic.
All six of Canada’s largest rental markets recorded annual rent declines in January. Vancouver apartment rents fell 9.2% year-over-year to $2,630, their lowest level since February 2022. Calgary rents declined 5.7% to a three-year low of $1,815, while Toronto rents dropped 4.6% to a 44-month low of $2,495. Apartment rents also declined in Ottawa (-4.8%), Montreal (-3.7%), and Edmonton (-2.6%), though Edmonton rents remained nearly 18% higher than three years ago.
Rent declines over the past year were led by secondary market units. Condo rents fell 5.7% annually to an average of $2,093, while rents for other secondary market units declined 3.1% to $2,078. Purpose-built rental apartments continued to hold up best, posting a 1.0% annual decrease to $2,049. Across unit types, three-bedroom rents were the only segment to post growth, rising 1.1% year-over-year to an average of $2,506.
At the provincial level, average apartment rents declined most in B.C. (-4.7%), Alberta (-4.3%), Ontario (-3.3%), and Quebec (-2.6%). Ontario recorded the largest two-year decline in apartment rents at -8.3%, while B.C. rents were down the most compared to three years ago. Saskatchewan continued to lead the country in rent growth, with apartment rents rising 4.6% annually and remaining the most affordable nationally at $1,371.
The data includes single-detached homes, semi-detached homes, townhouses, condominium apartments, rental apartments, and basement apartments. Outlier listings and single-room rentals are excluded.
Media Contacts:
Giacomo Ladas – giacomo@rentals.ca
Shaun Hildebrand – shaun@urbanation.ca