In August, the average rental unit price in Canada decreased by 4.8% to $2,035 compared to the previous year, according to a recent report by Rentals.ca and Urbanation. This represents the largest year-over-year decline since March. Average rents have been on a downward trend for 23 consecutive months, with a 7% decrease from 2024.
Despite a slight 0.1% monthly drop from July, rents had remained relatively stable following four consecutive monthly increases during the spring and early summer. Urbanation’s president, Shaun Hildebrand, attributes the uncertainty in the rental market to the escalating trade tensions between Canada and the United States. He anticipates a potential slowdown in demand due to reduced employment and consumer confidence, while construction costs could threaten the supply side.
The average asking rents for purpose-built apartments fell by 3.3% year over year to $2,038, while rents for condominium apartments saw a 7.7% decrease to $2,050 in the same period.
