The average rental unit asking price in Canada decreased by 4.8% year-over-year in August, totaling $2,035. This drop represents the largest decline since March, according to a monthly report by Rentals.ca and Urbanation. Average rents have been on a continuous decline for 23 months, with prices now 7% lower than in 2024. Despite this, rents remained stable on a monthly basis, decreasing by 0.1% from July following four consecutive monthly increases earlier in the year.
Urbanation’s president, Shaun Hildebrand, highlighted the escalating trade tensions between Canada and the United States as a new factor affecting the rental market. He expressed concerns that demand might weaken due to reduced employment and consumer confidence, while construction costs could rise, impacting the supply side.
In August, average asking rents for purpose-built apartments dropped by 3.3% year-over-year to $2,038, while rents for condominium apartments decreased by 7.7% to $2,050. This data indicates a challenging environment in the rental market, influenced by various economic factors.