Canada's rental market has reached a significant milestone, as new data shows national average asking rents dipped for the 12th consecutive month in September 2025, offering some relief to tenants after years of rapid growth.
Key Takeaways
- National average rent fell 3.2% year-over-year to $2,123 in September.
- Largest decreases recorded in British Columbia and Alberta.
- All of Canada’s six largest cities saw apartment rents decline.
- Only Manitoba reported rent increases last month.
National Trends: Rents Continue Their Downward Trajectory
According to the latest monthly analysis by Rentals.ca and Urbanation, average asking rents across Canada fell to $2,123 in September, marking a 3.2% annual decline. This represents the twelfth straight month of such decreases, a notable turnaround from the persistent growth seen in recent years. Renters nationwide have not seen this level of affordability in two years.
Breakdown by Property Type
The trend is reflected across most types of rentals:
- Purpose-built apartments: Down 2.1% to an average of $2,093.
- Condominium apartments: Decreased by 3% to $2,226.
- Houses and townhomes: Fell 5.5% to $2,178.
Regional Insights: Where Rents Dropped the Most
Some provinces led the way in declining rents:
Urban Centers: Major Cities See Affordability Gains
Apartment rents dropped in Canada’s top cities, led by:
- Vancouver: -8.2% (now $2,776)
- Calgary: -7.4% (now $1,897)
- Toronto: -2.9% (now $2,592)
- Edmonton: -2.3% (now $1,573)
- Ottawa: -1.3% (now $2,190)
- Montreal: -0.5% (now $1,981)
Renters in the historically high-cost markets of Vancouver and Toronto are experiencing prices at their lowest in nearly four years.
Factors Behind the Declines
Experts point to an increase in rental supply outpacing short-term demand—an unusual circumstance for Canada’s typically tight rental market. However, the report's analysts warn this trend may not last, as supply from sources like condominium investors could tighten, and population growth or employment stabilization could push demand upward again.
Conclusion: Will This Trend Continue?
The recent decrease in rents is a rare opportunity for renters, but as the market adjusts, it's unclear how long this reprieve will last. Industry leaders suggest monitoring regional supply and demand factors for insights into what renters can expect in the coming months.
