2/7/2025
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Posted in Rental Market by Vanguard Realty | Back to Main Blog Page
After a years-long surge, rental prices in key cities are finally cooling
Rents in Canada continue to decline, marking the fourth straight month of decreases and the lowest national average in 18 months, according to the latest National Rent Report from Rentals.ca and Urbanation.
While the national average rent dipped only slightly from $2,109 in December to $2,100 in January, it marked a 4.4% annual decline, or $96 less per month compared to the same period last year. The recent pullback follows a 38-month streak of continuous rent increases, which drove housing costs well above historical norms.
“The downward trend for rents in Canada accelerated during the first month of 2025," Urbanation president Shaun Hildebrand said in a press release. “Heightened downside risks for the economy, combined with declining international population inflows and multi-decade highs for apartment completions, suggest rents will continue to weaken in the months ahead.
"This will result in improved affordability for renters."
Ontario is leading the cooldown, with average rents falling 5.2% year-over-year to $2,329—a sharp decline from $2,632 in December, representing a $300 drop in just one month. Toronto saw one of the steepest rent declines in the country, falling 7.6% year-over-year to $2,615, marking a 30-month low.
British Columbia, the country’s most expensive rental market, is also seeing a downward trend. While the annual drop was more modest at 2.6%, Vancouver renters are finally seeing some relief after 14 consecutive months of price declines, with average rents falling 5.2% year-over-year to $2,896.
Other provinces saw mixed results. Nova Scotia rents dipped by just 0.7%, while Quebec saw a slight 0.4% increase. In Alberta, Saskatchewan, and Manitoba – markets that remain relatively affordable – rents increased by 2% to 3% annually, though Calgary saw a 6% drop to $1,925.
Read next: Lower mortgage rates boost Toronto home sales, but will it last?
The decline in asking rents has been most pronounced in the secondary rental market, which includes condos, townhomes, and houses. Condo rents fell 6.5% year-over-year to $2,219, while house and townhouse rents dropped 8.9% to $2,144.
On the other hand, purpose-built rental apartments have remained more stable, with overall rents slipping just 1.7%. Studio and three-bedroom apartments in this category even saw small increases of 0.5% and 2.1%, respectively.
A surge in shared accommodations has also contributed to rental price declines. Listings for roommate rentals increased by 42% in January, leading to a 7.6% annual drop in shared accommodation rents, which now average $933 per month – the lowest level in 18 months.
The largest drops in this category were in Alberta and Ontario, where roommate rents fell by 2.7% and 2.6% year-over-year, according to the report.
Source: Canadian Mortgage Professional
Canadian Rental Market, Ontario Rental Market, Rental Market
