Average rent in Canada down 4 per cent compared to last July
· Toronto Sun
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The average asking rent in Canada declined 4% year-over-year in July to $2,037, marking the 22nd consecutive month of annual rent decreases.
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However, the pace of decline continued to ease, and rents rose month-over-month for a fourth straight month, marking the smallest annual decline since February, according to the latest National Rent Report from Rentals.ca and Urbanation.
In Toronto , annual rents were down just 0.6%, the smallest decline among the six largest markets, alongside signs of a potential turnaround with listings down roughly 6% year-over-year, pointing to a tightening supply picture.
Rents overall were up 0.2% month-over-month in July, a fourth consecutive monthly increase since asking rents hit a 35-month low earlier this year.
Over the past two years, rents have declined 7.5%, falling to their lowest July level since 2022.
Rents rose month-over-month in three of Canada’s six largest markets in July, led by Toronto (+1.6% to $2,577), followed by Calgary (+0.5%) and Edmonton (+0.1%), while Vancouver (-1.4%) and Montreal (-0.4%) saw rents move lower while Ottawa was roughly flat (-0.2%).
Calgary and Vancouver (-4.5%) recorded the largest annual declines among the six largest markets, followed by Edmonton (-3.6%), Ottawa (-2.4%), and Montreal (-1.6%).
Toronto market a ‘potential leading indicator’
“Canada’s rental market is showing signs of stabilizing, but not yet recovering,” said Shaun Hildebrand, President at Urbanation, in a statement.
“While rents have risen for four straight months, this is typical seasonal momentum heading into the back-to-school period, with annual declines persisting across most of the country. Toronto remains the standout, with supply tightening and rents approaching positive annual territory, making it a market worth watching as a potential leading indicator.”
Purpose-built rentals remained the most resilient segment of the market, with asking rents declining 2.6% annually to an average of $2,041, while three-bedroom purpose-built rents were flat year-over-year.
Condo rents fell 6.3% year-over-year to $2,063, led by a 9.6% annual decline in studio condo rents, while houses and townhomes saw the steepest annual decline among property types, down 7.5% to $2,007.
Nationwide, the average asking rent for purpose-built and condominium apartments was $2,043 in July, up 0.3% from June.
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At the provincial level, Ontario recorded the largest monthly rent increase in the country, up 0.6% for all property types (0.8% for purpose-built and condo apartments).
Annual apartment and condo rent declines remained concentrated in Canada’s largest provinces, led by Alberta (-4.3%), British Columbia (-4.1%) and Ontario (-3.7%), while Nova Scotia (+4.5%) and Manitoba (+1.5%) posted annual increases.
Nova Scotia ($2,377) remained the most expensive province in the country for apartment and condo rents, edging out British Columbia ($2,357) for a third consecutive month.
Outside the six largest markets, gains were seen in Welland (+6.9%) and North York (+5.1%) while double-digit declines were concentrated in markets adjacent to Quebec and Ontario’s largest centres including Markham (-11.9%).