In August, the average rental unit asking price in Canada dropped to $2,035, showing a 4.8% decrease compared to the previous year. This decline represents the most significant year-over-year drop since March, according to a recent report from Rentals.ca and Urbanation.
The report reveals a continuous decline in average rents for 23 consecutive months, with prices now 7% lower than in 2024. Although rents remained relatively stable month-to-month, experiencing a marginal 0.1% decrease from July, this followed four consecutive monthly increases during the spring and early summer.
Shaun Hildebrand, the president of Urbanation, highlights the escalating trade tensions between Canada and the United States as a new factor of uncertainty in the rental market. He cautions that lower employment rates and reduced consumer confidence could lead to a slowdown in demand, while potential increases in construction costs threaten the supply side.
Specifically, asking rents for purpose-built apartments saw a 3.3% decline year over year, averaging $2,038 last month. Similarly, asking rents for condominium apartments decreased by 7.7% to $2,050.
