The average rental unit asking price in Canada dropped to $2,035 in August, showing a 4.8% decrease from the previous year, which is the most significant year-over-year decline since March. A recent report by Rentals.ca and Urbanation revealed that average rental rates have been decreasing for 23 consecutive months, with a 7% drop compared to 2024. Despite four consecutive monthly increases earlier in the year, rents remained relatively steady in August, decreasing by 0.1% from July.
Urbanation’s president, Shaun Hildebrand, highlighted the impact of the escalating trade tensions between Canada and the United States on the rental market. He expressed concerns that lower employment rates and consumer confidence could lead to a slowdown in demand, while rising construction costs might threaten the supply.
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 larger decline of 7.7%, falling to $2,050.