The average rental unit asking price in Canada experienced a 4.8% decrease in August compared to the previous year, settling at $2,035. This decline marks the most significant year-over-year drop since March, according to a recent report from Rentals.ca and Urbanation.
For 23 consecutive months, average asking rents have been on a downward trend, now standing at a seven percent decrease from the levels seen in 2024. While rents remained relatively stable on a monthly basis, showing a marginal 0.1% decrease from July following four consecutive monthly increases earlier in the year.
Urbanation’s president, Shaun Hildebrand, highlights the growing uncertainty in the rental market due to the escalating trade tensions between Canada and the United States. Hildebrand expresses concerns that lower employment rates and dwindling consumer confidence could lead to a slowdown in demand in the short term, while potential increases in construction costs may threaten the supply side.
In August, asking rents for purpose-built apartments saw a 3.3% decline year over year, averaging at $2,038, while asking rents for condominium apartments dropped by 7.7% to $2,050.