The average asking rent for all residential properties in January continued to fall for the fourth consecutive month to $2,100. This 4.4 per cent decline marks an 18-month low, according to the latest National Rent Report from Rentals.ca and Urbanation. Still, despite the reduction in rent growth, average asking rents remain 5.2 per cent higher than two years ago and 16.4 per cent above levels recorded three years ago.
“The downward trend for rents in Canada accelerated during the first month of 2025,” said Shaun Hildebrand, President of Urbanation. Heightened downside risks for the economy, combined with declining international population inflows and multi-decade highs for apartment completions, suggest rents will continue to weaken in the months ahead. This will result in improved affordability for renters.”
Much of the decline in January was concentrated in the secondary rental market, where asking rents for condominium apartments fell 6.5 per cent year-over-year to an average of $2,219, while rents for houses and townhomes declined 8.9 per cent to $2,144. Meanwhile, purpose-built rental apartments saw a milder decrease of 1.7 per cent, with some unit types bucking the overall downward trend. Studio and three-bedroom purpose-built rental units remained in high demand, with rents increasing 0.5 and 2.1 per cent respectively.
Ontario saw the steepest rent declines among the provinces, with apartment rents falling 5.2 per cent in January to an average of $2,329. Despite a 2.6 per cent decrease over the past year, British Columbia remained the country’s most expensive rental market, with average asking rents for both purpose-built and condominiums coming in at $2,463. Other provinces recorded mixed results, with Nova Scotia rents down 0.7 per cent year-over-year to $2,195, while Quebec remained stable at 0.4 per cent. Meanwhile, Alberta, Saskatchewan, and Manitoba saw 2-3 per cent annual rent increases, reflecting continued demand in these more affordable markets.
Within Canada’s largest rental markets, Toronto recorded the largest rent decline, with apartment rents dropping 7.6 per cent annually to $2,615, reaching a 30-month low. Calgary also experienced a significant decrease, with rents down 6.0 per cent to $1,925. In Vancouver, where rents have now fallen for 14 consecutive months, the average asking rent declined 5.2 per cent year-over-year to $2,896. Since reaching a peak of $3,340 in July 2023, Vancouver’s rents have fallen by a total of 13 per cent, equating to a $443 monthly reduction.
The downward trend in rents was evident across most unit types, particularly in Toronto and Vancouver, where two-bedroom apartment rents declined 8.1 per cent and 7.0 per cent respectively. Calgary saw the largest decline in three-bedroom apartment rents, down 8.7 per cent to $2,412, while Montreal was the only major city to record an increase for this unit type, rising 5.8 per cent to $2,771.
The growing supply of shared accommodations contributed to a sharp decline in roommate rents. Listings for shared housing increased 42 per cent year-over-year in January, primarily driven by growth in Calgary. As a result, the national average asking rent for shared units fell 7.6 per cent annually to $933, the lowest level in 18 months. Alberta and Ontario saw the largest declines, with average roommate rents dropping 2.7 per cent and 2.6 per cent year-over-year, respectively.
