Canadian Rent Prices Decline for 10th Consecutive Month Amid Regional Variations and Market Shifts
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Canada's rental market is experiencing a significant downturn, with national average asking rents declining by 3.6% year-over-year in July 2025, marking the tenth consecutive month of such decreases. The average rent now stands at $2,121, down from $2,201 in July 2024. This trend reflects a broader softening across most provinces and unit types, with one-bedroom units seeing the steepest annual drop at 4.6%, followed by two-bedroom units at 3.5%. Despite these declines, rents remain approximately 2% higher than two years ago and 11% higher than three years ago.
Regional variations are notable, with provinces like Nova Scotia and British Columbia leading in rent reductions, posting declines of 5% and 4.4%, respectively. Ontario experienced a 3% decrease, bringing the average rent to $2,325. Major cities also reflect this trend: Vancouver and Calgary reported significant annual rent declines of 9.6% and 9.3%, respectively. Toronto rents dropped 4.6% to $2,593, while Montreal saw a more modest decrease of 1.6% to $1,971. Ottawa and Edmonton also experienced slight declines of 0.9% each .
In contrast, Saskatchewan stands out as the fastest-growing yet most affordable province, with average rents increasing by 4% annually and 32% over three years to just $1,384. Purpose-built rental apartments have shown more stability, with rents rising 7% annually and 23% over the past three years to an average of $2,095, still below the national average and more affordable than condos or houses. As the seasonal peak passes, experts anticipate continued downward pressure on rents heading into the fall, influenced by factors such as economic conditions, housing supply, and shifting demand patterns.
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