Rents in Canada Decline for 16 Months in a Row

Asking rents for all property types in Canada fell to a 31-month low of $2,057 in January, declining on an annual basis for the 16th consecutive month. This surpassed the 15 months of rent declines experienced during COVID. However, the annual rate of decline slowed for the third consecutive month, with the 2.0% year-over-year decrease representing the smallest annual decline since November 2024.

Asking rents in Canada have declined by 6.3% over the past two years, while remaining 3.1% higher than three years ago and 12.9% higher than the pre-COVID level in January 2020.

Rents Per Square Foot Continue to Grow

Part of the downward pressure on rents over the past two years can be explained by decreasing unit sizes. The average size of rental listings was 857 square feet in January, down from 885 square feet last year and 943 square feet two years ago.

In fact, when measured on a per square foot basis, average asking rents in Canada have continued to increase, rising 1.4% year-over-year. At an average of $2.46 per square foot, rents were up 3.2% over the past two years and 15.7% higher than three years earlier. This data was based on a large sample containing square footage information, representing more than 80% of all listings.

Rental Affordability at Its Best in Years

As unit sizes have decreased and the rental market has experienced softer conditions, lower rents have resulted in a noteworthy improvement in affordability. As a percentage of average renter household income, rents in January fell below 30%, the standard benchmark used by the industry to measure affordability. At 29.5%, the average rent-to-income ratio was its lowest of the past six years, even falling below lows seen during the pandemic.

Condo Rents Fall Nearly 6% from Last Year

Asking rents in Canada declined the most over the past year for condo apartments, which experienced a 5.7% drop to an average of $2,093. Rents for other secondary market units decreased 3.1% annually to an average of $2,078, while purpose-built rents continued to hold up best with a 1.0% annual decrease to an average of $2,049.

Across all property types, one-bedroom rents decreased the most compared to a year ago, down 3.4% to an average of $1,792. Three-bedroom units were the only unit type to register rent growth in the past year, with rents rising 1.1% to an average of $2,506.

Purpose-built Rents for Three-Bedroom Units Increased 4%

Three-bedroom rents within purpose-built rentals grew 3.9% over the past year to an average of $2,756, while all other unit types experienced annual rent decreases. Three-bedroom rents also held up best within the condo market, recording a 0.7% annual decline to an average of $2,832. Studio rents for condos saw the largest annual drop of 9.6% to an average of $1,694.

Provincial Overview

Rent Declines Focused in Largest Provinces

The average asking rent for purpose-built and condominium apartments was $2,053 in January, a 1.7% year-over-year decrease. Provincially, annual declines in average apartment rents were concentrated in B.C. (-4.7% to $2,347), Alberta (-4.3% to $1,656), Ontario (-3.3% to $2,251), and Quebec (-2.6% to $1,914). Ontario recorded the largest two-year decline in average apartment rents (-8.3%), while B.C. rents were down the most compared to three years ago (-5.0%).

Saskatchewan continued to lead all provinces for apartment rent growth, with a one-year increase of 4.6% and a three-year increase of 26.2%. Apartment rents in Saskatchewan remained the most affordable in Canada at an average of $1,371.

Three-Bedroom Apartment Rents Rise in Ontario

The average rent for three-bedroom apartments in Ontario increased 1.7% year-over-year, reaching $3,029. Meanwhile, one-bedroom apartment rents fell the most in Ontario over the past year, with a 5.3% decline to an average of $2,008. One-bedroom rents also fell the most of any apartment type in B.C. (-5.2% to $2,077) and Alberta (-4.4% to $1,469).

Municipal Overview

Vancouver Apartment Rents Fall to Four-Year Low

Among Canada’s six largest markets, asking rents for apartments fell the most in Vancouver, dropping 9.2% over the past year and by a total of 16.5% over the past three years. At an average of $2,630, Vancouver apartment rents were at their lowest since February 2022, declining on an annual basis for 26 straight months.

Apartment rents recorded annual declines in each of the six largest markets, with Calgary rents down 5.7% to a three-year low of $1,815 and Toronto rents down 4.6% to a 44-month low of $2,495. After experiencing very minor annual decreases in previous months, apartment rents in Ottawa fell 4.8% to a 33-month low of $2,107. Milder annual rent declines were seen in Montreal (-3.7% to $1,913) and Edmonton (-2.6% to $1,488). Apartment rents in Edmonton remained 17.8% higher than three years earlier.

Three-Bedroom Apartment Rents Up 3% in Ottawa

Three-bedroom apartment rents registered growth over the past year in Ottawa (+3.1% to $2,699), Edmonton (+2.0% to $1,969), and Montreal (+1.6% to $2,815). In Vancouver, three-bedroom apartment rents fell fastest, dropping 9.9% annually to $2,815. In Toronto, two-bedroom rents saw the largest annual decline of 8.4% to $2,826.

Canada’s Most Livable City is also the Most Expensive for Renters

Canada’s most livable city (North Vancouver), according to The Globe and Mail, was the country’s most expensive rental market with an average apartment rent of $2,905 in January. Four other B.C. markets (outside of Vancouver) were ranked in the top five most expensive, including Richmond ($2,643), Coquitlam ($2,502) and Burnaby ($2,483). North York ($2,523) was Ontario’s most expensive market (outside of Toronto), while Westmount ranked highest in Quebec ($2,463).

Among Canada’s least expensive markets, Regina ranked highest in the most livable cities list at seventh place, while averaging apartment rents of $1,374, fourth lowest. Winnipeg was ranked as the 11th most livable city and had the 12th most affordable rents ($1,648), while Quebec City was ranked as the 14th most livable city and had the eight least expensive rents ($1,489).

Six Cities Post Double-Digit Rent Declines

Kingston continued to benefit from an infusion of higher-priced new supply, ranking first among all cities in Canada with a 20.3% annual increase. Regina and Saskatoon followed — both recording annual rent growth of 8.2% for apartments. Longueuil topped rent growth for apartments in Quebec with a 6.6% increase, while Hamilton was Ontario’s rent growth leader with a 5.9% increase, and Nanaimo saw the fastest rent growth in B.C. with a 5.6% increase.

Côte Saint-Luc rents continued to be weighed down primarily from a compositional shift in listings away from higher-priced properties, causing a 20.1% annual decline. Other markets experiencing double-digit annual declines for apartment rents included New Westminster (-15.4%), Quebec City (-15.2%), Coquitlam (-14.0%), Oakville (-13.8%), and East York (-10.0%). Overall, 13 of the 15 markets with the steepest rent declines were in B.C. and Ontario.

Shared Accommodation Rents Fall Below $900

Average asking rents for shared accommodations in B.C., Alberta, Ontario and Quebec fell below $900 for the first time in three years, declining 4.3% annually to $893. Shared accommodation rents fell the most over the past year in B.C. (-10.2% to $1,040), pushed down by a 16.0% annual drop in Vancouver (-16.0% to $1,161). In Toronto, shared accommodation rents decreased only 1.2% from last year to an average of $1,167, while rising 2.0% annually in Edmonton to an average of $778 and growing 7.4% in Ottawa to an average of $1,101. Shared accommodation rents in Ottawa have been pushed higher by the completion of new co-living projects.

You can check out the previous rent reports here

The data used in this analysis is based on monthly listings from the Rentals.ca Network of Internet Listings Services (ILS). This data differs from the numbers collected and published by the Canada Mortgage Housing Corporation (CMHC).

The Rentals.ca Network of ILS’s data covers both the primary and secondary rental markets and includes basement apartments, rental apartments, condominium apartments, townhouses, semi-detached houses, and single-detached houses. CMHC’s primary rental data only includes purpose-built rental apartments and rental townhouses. CMHC also collects data on secondary market rentals, but this is reported separately.

CMHC’s rental rates are based on the entire universe of purpose-built rental units (rental stock), regardless of rental tenure. CMHC rental rates are reflective of what the average household spends on rental housing and not the current market rents for vacant units. The data used in this report is based on the asking rates of available (vacant) units only and reflect on-going trends in the market. This covers a smaller sample size but is more representative of the actual market rent a prospective tenant would encounter. The Rentals.ca Network of ILS’s data typically provides much higher rental rates compared to CMHC, as vacant units typically reset to market rates when not subject to rent control.

The average and median rental rates in this report can also skew higher than CMHC’s data for the following reasons: the inclusion of larger more expensive unit types such as single-family homes, townhouse units, and large luxury condominium units; the presence of duplicate or multiple listings at the same property and the survivorship bias where more expensive or over-priced units take longer to lease and remain in the sample longer.

Properties listed for greater than $5,000 per month, and less than $500 per month are removed from the sample. Similarly, short-term rentals, single-room rentals, and furnished suites are removed from the sample when identifiable.