According to the latest Rentals.ca and Urbanation National Rent Report, rental prices across Canada have shown stabilization after several years of rapid growth. Average asking rents in many Canadian cities are at multi-year lows, with Toronto and Vancouver rents falling to their lowest in nearly four years.
But for many renters, affordability still feels out of reach.
Despite the softening of rents, the average asking rent in Canada remains over $2,000, 14% higher than pre-COVID levels seen in February 2020. In addition, renters receive less space on average, while the price per square foot remained stable year-over-year.
Data from the Rentals.ca National Rent Report database, which analyzes thousands of apartment and condominium listings across major Canadian markets each month, suggests that renters today often get less living space than they did just a few years ago, for the same, or even higher rent.
Units Are Getting Smaller
Analysis of apartment and condominium listings included in the Rentals.ca National Rent Report reveals a gradual decline in the average size of rental units across Canada.
| Year | Average Unit Size |
|---|---|
| 2024 | 754 sq ft |
| 2025 | 737 sq ft |
| 2026 | 719 sq ft |
Since 2024, the average rental unit size has declined by approximately 35 square feet, or about 4.6%.
While that may seem modest, even small reductions in space can affect how renters use their homes, whether in terms of storage, remote work setups, or everyday living.
Much of this change is driven by a growing share of smaller units in the market, rather than significant reductions in the size of individual unit types.
In Canada’s most expensive rental markets, units tend to be even smaller.
| City | Average Unit Size |
|---|---|
| Vancouver | 650 sq ft |
| Ottawa | 701 sq ft |
| Toronto | 712 sq ft |
| Montreal | 725 sq ft |
| Calgary | 754 sq ft |
| Edmonton | 771 q ft |
Among these cities, Vancouver has the smallest average rental units at approximately 650 square feet, compared with about 770 square feet in Edmonton, a difference of roughly 120 square feet.
Rents per Square Foot Vary Widely Across Canada
The average asking rent per square foot held steady year-over-year, remaining at $2.53. Across major Canadian cities, rent per square foot varies significantly.
| City | Rent per Square Foot |
|---|---|
| Vancover | $4.11 |
| Toronto | $3.52 |
| Ottawa | $3.09 |
| Montreal | $2.73 |
| Calgary | $2.46 |
| Edmonton | $1.99 |
Vancouver renters now pay more than $4 per square foot, the highest in Canada and more than double the price seen in some prairie markets, despite multiple years of declining rents.
Toronto’s rent per square foot is $3.52, while Ottawa also has a relatively expensive market for unit size, with rent exceeding $3 per square foot.
Meanwhile, cities such as Calgary and Edmonton offer more value, with larger units at lower per-square-foot rents, highlighting regional affordability differences.
The Affordability Trade-Off: Less Space for the Same Budget
For renters, these trends can create a disconnect between headline rent figures and day-to-day affordability.
Even if total rents and rent per square foot remain relatively stable, smaller units mean renters are getting less space for their money.
This can translate into practical challenges such as:
- less room for remote work or study spaces
- reduced storage capacity
- fewer options for families or roommates
- tighter living arrangements overall
In many high-demand urban markets, renters are increasingly trading space for location, prioritizing proximity to transit, employment, and amenities. Developers have introduced enhanced building amenities, such as co-working spaces, lounges, fitness centres, children’s play areas, and outdoor spaces, to offset the trend of decreasing unit sizes.
Why Apartments May Be Getting Smaller
Several factors may be contributing to the trend toward smaller rental units:
New housing supply skewing toward smaller units
Much of the recent housing supply in Canada’s largest cities has come from condominium developments, where studios and one-bedroom units represent a growing share of new inventory.
While individual unit types have not shrunk dramatically, the overall mix of available rentals has shifted. For example, the average size of one-bedroom units has declined by only about 1.4% over the past two years, suggesting that a one-bedroom unit today is similar in size to those in previous years. However, a higher proportion of smaller units, such as studios and one-bedrooms, is contributing to the decline in average unit size across the market.
Developer economics
Smaller units allow developers to maximize the number of homes within a building while keeping price points accessible to buyers and investors. In addition, the size of a rental unit directly affects development charges. In Toronto, development charges for purpose-built rental units are significantly higher for larger units. A two-bedroom unit carries charges of approximately $48,000 compared to about $33,500 for a one-bedroom or bachelor unit, a difference of roughly 44%.
Demand for central locations
Many renters prioritize living close to employment centres, transit hubs, and urban amenities. In high-demand neighbourhoods, smaller units may be the most viable way to deliver housing within certain price ranges.
Looking Beyond Headline Rents
As Canada’s rental market continues to evolve, metrics such as rent per square foot and unit size offer additional insight into how affordability is changing.
While overall rent levels may rise or fall from year to year, shrinking apartment sizes mean renters may be receiving less living space for their money than they did just a few years ago.
For renters balancing cost, space, and location, the true cost of renting may be measured not only by monthly rent but also by the amount of space that rent provides.
Methodology
Data is sourced from the Rentals.ca National Rent Report, produced in partnership with Urbanation, and is based on apartment and condominium listings across major Canadian markets. Unit sizes are re-weighted to reflect the distribution of listings, and rent per square foot is calculated using asking rents and reported unit sizes. Changes over time may reflect both shifts in unit size and changes in the mix of available rental units.