Based on the recently released affordability index within the latest Rentals.ca and Urbanation National Rent Report, a new analysis from Rentals.ca indicates an easing of affordability pressures for renters.
Using CMHC’s commonly referenced affordability benchmark of 30% of pre-tax household income, the analysis shows a decline in the share of median renter household income required to afford average asking rents in many Canadian rental markets since late 2022.
While rent levels remain historically elevated and many households still feel financially stretched, particularly those searching for larger homes, the data suggest that the rent-to-income gap has narrowed meaningfully in several major cities since its peak in 2023.
Even as overall affordability pressures ease, the improvement has not been uniform across unit types. Studio and one-bedroom trends have improved more consistently across markets, while three-bedroom rents still represent a substantially higher share of renter income in many cities.
A post-2022 run-up, followed by easing pressure
Across Canada, the share of income required to pay rent rose sharply from late 2022 into 2023, before trending lower through 2024 and into 2025. While many renters still report struggling with affordability, particularly in high-cost markets, the data suggest those pressures are easing.
By October 2025, average asking rents represented:
- 30.6% of median renter household income in B.C.
- 30.5% in Ontario
- 23.4% in Alberta
- 37.0% in Nova Scotia
The provincial picture highlights a key reality: affordability pressures have eased in most regions since peak levels, but the burden remains materially higher in certain provinces, particularly in parts of Atlantic Canada.
Major cities: meaningful improvement since the peak
Several major Canadian cities have seen the share of income required for rent fall significantly from peak levels.
Vancouver saw the most pronounced shift. Average asking rents peaked at 42.4% of renter household income in June 2023, before declining to 32.3% by October 2025. Over the same period, average asking rents declined by approximately $ 566 per month, from $ 3,304 at peak levels to $2,738 in October 2025.
Toronto has also moved meaningfully lower. After peaking at 38.1% in November 2022, the share of income required for average asking rents declined to 29.8% by October 2025, placing Toronto just under CMHC’s commonly referenced affordability benchmark of 30% of pre-tax household income. Over the same period, average asking rents declined by approximately $337 per month, from $2,896 at peak levels to $2,559 in October 2025.
In Montreal, average asking rents represented 30.3% of renter income in October 2025, down from a peak of 34.2%in October 2023. Ottawa measured 28.2% in October 2025, improving from earlier high points. Over the same period, average asking rents declined by approximately $95 per month, from $2,052 at peak levels to $1,957 in October 2025.
In Alberta, affordability conditions remain comparatively strong. By October 2025, average asking rents represented 23.2% of renter income in both Calgary and Edmonton. In Calgary, this follows a pullback of roughly $320 per month from its September 2023 peak of $2,230 to $1,910 in October 2025. Edmonton has experienced a more modest adjustment, with average rents easing by approximately $88 per month since peaking in September 2024, bringing the average to $1,637.
What’s behind the improvement?
A combination of factors is driving the shift:
- Rent growth is moderating from peak levels in many markets, with some cities experiencing outright declines as elevated levels of new rental supply have come online and demand conditions have normalized.
- Income growth has continued steadily since 2022, with Statistics Canada reporting an 11.7% increase in nominal average weekly earnings nationwide from October 2022 to October 2025.
The result is a narrowing gap between renter incomes and asking rents in many markets since peak conditions.
Methodology
Median income is based on Statistics Canada’s Canadian Income Survey, using data reported by CMHC for median pre-tax renter household income (latest available 2023). Income is adjusted using Statistics Canada data for average weekly earnings, broken down by province. For Census Metropolitan Areas (CMAs) not listed in CMHC’s data, the closest listed CMA is used as a proxy. Rent price data is based on average asking rents published in the monthly National Rent Report, co-authored by Rentals.ca and Urbanation.
Rent data is based on average asking rents published in the monthly National Rent Report, co-authored by Rentals.ca and Urbanation. The data is sourced from the Rentals.ca Network of Internet Listings Services (ILS) and reflects asking rents for currently available units across both primary and secondary rental markets. Listings above $5,000 per month and below $500 per month, as well as short-term and single-room rentals where identifiable, are excluded from the sample.
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