The average rental unit asking price in Canada for August was $2,035, showing a 4.8% decline compared to the previous year, as per a recent report by Rentals.ca and Urbanation. This drop represents the most significant year-over-year decrease since March. Rental rates have been decreasing for 23 consecutive months, with a 7% drop compared to 2024. Month-to-month, rents remained steady with a marginal 0.1% decrease from July, following four consecutive monthly increases during the spring and early summer.
Urbanation’s president, Shaun Hildebrand, highlights the escalating trade tensions between Canada and the United States as a new uncertainty impacting the rental market. He cautions that lower employment and consumer confidence due to the trade war may dampen demand in the short term, while potential higher construction costs could threaten the supply side.
In August, asking rents for purpose-built apartments dropped by 3.3% year-over-year to an average of $2,038, while asking rents for condominium apartments decreased by 7.7% to $2,050.