In August, the average rental unit price in Canada dropped to $2,035, showing a 4.8% decrease from the previous year, marking the largest year-over-year decline since March, according to a report by Rentals.ca and Urbanation. This decline represents the 23rd consecutive month of year-over-year decreases, with prices now down by seven percent from 2024. Despite this, rents remained relatively stable on a monthly basis, showing a marginal 0.1% decrease from July following four consecutive monthly increases during the spring and early summer.
Urbanation’s president, Shaun Hildebrand, highlighted the escalating trade tensions between Canada and the United States as a new uncertainty impacting the rental market. He cautioned that lower employment rates and consumer confidence could potentially slow demand in the short term, while higher construction costs pose a threat to the supply side of the market.
The average asking rent for purpose-built apartments decreased by 3.3% year over year to $2,038, while asking rents for condominium apartments saw a steeper decline of 7.7% to $2,050.