Average asking rents across Canada continued to decline in July, falling for the 10th consecutive month on a year-over-year basis, according to a new report from Rentals.ca and Urbanation.
The national average asking rent dipped 3.6 per cent from July 2024 to $2,121, marking the largest annual drop of the year so far. Month-over-month, rents remained relatively steady, with a modest $4 decrease from June.
The report signals a continued cooling trend in Canada’s rental market, driven by shifting demand and softening economic conditions.
“Canada’s rental market is experiencing a prolonged softening phase, with price declines accelerating across most provinces and unit types,” said David Aizikov, manager of data services at Rentals.ca. “We expect this trend of declining rents to continue into the fall.”
Breakdown by Property Type
- Purpose-built rental apartments saw a 1.7% annual decline, with average asking rents at $2,095.
- Condominium apartments experienced a steeper drop of 5.7%, bringing average asking rents down to $2,202.
Despite the ongoing slide, the report notes that average asking rents are still 2% higher than two years ago and 11% higher than three years ago, underscoring how far rental costs have risen since the pandemic.
Provincial Trends
Among the provinces, Nova Scotia recorded the largest year-over-year decline, with rents falling 5% to an average of $2,275.
British Columbia followed with a 4.4% decrease to $2,475, while Ontario rents dropped 3% to $2,325.
These drops come amid a broader conversation about housing affordability in Canada, as rising interest rates and high ownership costs had initially driven more Canadians into the rental market over the past two years. However, with economic headwinds and slower population growth, demand appears to be easing.
The Rentals.ca and Urbanation report suggests tenants may see more negotiating power in the months ahead, especially as new rental supply continues to hit the market.