In August, the average rental unit asking price in Canada was $2,035, showing a 4.8% decrease from the previous year, according to a recent report by Rentals.ca and Urbanation. This drop represents the most significant year-over-year decline since March.
For the 23rd consecutive month, average asking rents have continued to decrease annually, with a notable seven percent decline compared to 2024. Despite this, rents remained relatively stable on a monthly basis, experiencing only a marginal 0.1% decrease from July following four consecutive monthly increases in the spring and early summer.
Shaun Hildebrand, the president of Urbanation, highlighted the escalating trade tensions between Canada and the United States as a new factor of uncertainty for the rental market. He expressed concerns that a potential slowdown in demand might occur in the short term due to decreased employment rates and consumer confidence, while construction costs could rise, posing a threat to the housing supply.
In terms of specific rental property types, asking rents for purpose-built apartments decreased by 3.3% year over year, averaging $2,038 last month. Similarly, asking rents for condominium apartments saw a more significant decline of 7.7%, settling at an average of $2,050.