In August, the average asking price for renting a unit in Canada was $2,035, showing a 4.8% decrease from the previous year. According to a recent report by Rentals.ca and Urbanation, this drop marks the most significant year-over-year decline since March.
For the 23rd consecutive month, average asking rents have continued to decrease, now standing at a seven percent drop compared to 2024. While rents remained relatively stable on a monthly basis, with a marginal 0.1% decrease from July, this followed four consecutive monthly increases during the spring and early summer.
Shaun Hildebrand, the president of Urbanation, highlighted the escalating trade tensions between Canada and the United States as a new factor of uncertainty in the rental market. He cautioned that lower employment rates and consumer confidence could potentially dampen demand in the short term, while the possibility of increased construction costs threatens the rental supply.
The report also revealed that asking rents for purpose-built apartments saw a 3.3% decline year over year, averaging $2,038 last month. Similarly, rents for condominium apartments dropped by 7.7% to $2,050.
