Rents Drop Again Offering Greater Affordability

The average asking rent for all residential properties in Canada declined 2.3% year-over-year in August to $2,137, marking the eleventh consecutive month of annual rent decreases, according to the latest national rental report from Rentals.ca and Urbanation.

This is the longest stretch of rent declines since the early pandemic period.

Despite the drop, average asking rents remained 1% above levels from two years ago, reflecting lingering upward pressure over the long-term.

Purpose-built rentals posted the smallest annual decline in August at 0.4%, compared to a 3.7% drop for condominiums and 6% for houses and townhomes.

Over three years, purpose-built rents increased 22.6%, far outpacing condo rents, which have increased 4.3%. Rents for houses and townhomes have slipped 0.4% over the same time period.

Among major cities, Vancouver recorded the largest annual rent decline for apartment rents at 9.5%, followed by Calgary (-6.6%), Toronto (-3.4%) and Ottawa (-1%). Edmonton led three-year growth at 25.5%, ahead of Montreal at 15.1%, as Vancouver and Toronto recorded declines over the same period.

Condo apartment rents in the Greater Toronto Area (GTA) have been on a downward trajectory since early 2023. Rentals became even more affordable in the second quarter of 2025, according to the Toronto Regional Real Estate Association, which reports on rents quarterly rather than monthly. Average one-bedroom rents were down 5.1% year-over-year to $2,326. Average two-bedroom rents were down by 3.5% over the same time period to $3,066.

While relatively strong population growth and less demand for ownership housing resulted in a 16.6% increase in rental transactions compared to the second quarter of 2024, the inventory of units remained very high at 27,060 — up 16% year-over-over. As a result, renters benefitted from substantial negotiating power with landlords due to a well-supplied marketplace.

Looking forward, recent trends in the GTA rental market will likely remain in place, at least for the remainder of 2025. Condo development completions will result in more investor-led rental supply coming on line. At the same time, the population in the GTA will continue to grow.