Canada’s rental market has cooled dramatically, with average asking rents falling to their lowest level in two years. According to the latest National Rent Report from Rentals.ca and Urbanation, the average asking rent for all residential properties in September 2025 was $2,123 — down 3.2 per cent from the same time last year. This marks the twelfth consecutive month of rent declines and follows an unprecedented 38-month streak of steady increases that stretched from August 2021 to September 2024. It’s the first time since January 2022 that the country has experienced such an extended downward trend in rents.
Urbanation president Shaun Hildebrand explained that renters are currently enjoying a rare moment of improved affordability, particularly in traditionally expensive markets like Vancouver and Toronto. Rents in these two cities have dropped to their lowest levels in nearly four years. He attributed the decline to a temporary oversupply of rental units compared to demand — a situation driven by record apartment completions, a drop in non-permanent resident population, and a softening labour market. However, he cautioned that this balance may not last long as secondary market supply tightens and population and employment growth stabilize.
All six of Canada’s largest cities saw annual rent decreases in September. Vancouver led the slide with an 8.2 per cent drop to $2,776, followed by Calgary (-7.4 per cent), Toronto (-2.9 per cent), Edmonton (-2.3 per cent), Ottawa (-1.3 per cent), and Montreal (-0.5 per cent). On a three-year basis, rents in Vancouver and Toronto are down 10.5 and 8.6 per cent respectively, while Edmonton stands out with an 18.3 per cent increase over the same period.
Mississauga, one of the country’s priciest rental markets, experienced one of the most notable year-over-year declines. A one-bedroom unit averaged $2,138 in September, down 0.6 per cent from August and a steep 9.3 per cent compared to the previous year. Two-bedroom units averaged $2,563, slipping 0.9 per cent month-over-month and 8.2 per cent annually. Despite the declines, Mississauga remains among the top ten most expensive markets in Canada, just behind North York and Etobicoke.
Across the country, rents for all property types fell compared to last year. Purpose-built rentals declined by 2.1 per cent, condo rents by 3 per cent, and houses and townhomes by 5.5 per cent. Over a two-year period, the secondary market saw the sharpest drops, with condo rents down 4.7 per cent and houses and townhomes down 8.3 per cent, while purpose-built rentals continued to rise modestly. One-bedroom units saw the largest annual rent decrease at 4.1 per cent, followed by two-bedrooms (-2.6 per cent), studios (-2.4 per cent), and three-bedrooms (-1.3 per cent).