According to the latest rental report, the national average rental price fell to $2,088 in February.
This marks the fifth straight month of rent decline, with a 4.8% drop in February being the biggest since April 2021.
Despite these declines, rent prices are still 16.9% higher than pre-pandemic levels and 5.2% higher than two years ago.
“Rents in Canada are softening because supply exceeds demand,” said Shaun Hildebrand, president of urbanization.
“Currently, apartment construction is currently at record highs, while at the same time, population growth has slowed down due to a potential trade war with the United States and the economy faces increased risks,” he added. “As these trends may still exist, rents are expected to continue to decline in the near term.”
The average required rent in Canada has fallen by 105 CAD since February 2024, a sharp drop seen during the pandemic between February 2020 and February 2021. By comparison, rents rose $209 per month between February 2023 and February 2024.
Despite the recent decline, average rents are still $302 higher than five years ago.
Ontario accounts for the majority of Canadian rent declines
The overall decline in rents is largely driven by Ontario, where rent prices for dedicated construction and apartment rentals fell 4.2% year-on-year to $2,329. British Columbia (-1.0% to $2,457) and Quebec (-0.6% to $2,329) also recorded a decline.
By comparison, rent prices rose in Alberta (+1.4% to $1,732) and Nova Scotia (+1.2% to $2,171). Saskatchewan (+5.2% to $1,329) and Manitoba (+3.4% to 1,606) recorded the strongest rental growth, the two most affordable provinces.
In most areas, three-bedroom apartments are more important than smaller units. In Ontario, rents for these units fell by only 0.3%, while rents for other unit types increased. British Columbia recorded a slight increase, while Quebec brought rent growth, followed by Alberta and Manitoba.
Calgary’s leading major market rentals drop
Among Canada’s largest rental market, Calgary’s biggest annual decline, with apartment rentals falling 7.0% to an average of $1,916. Rents in Toronto fell 6.7% year-on-year to $2,615, marking the 13th straight month of annual decline and hit a 2.5-year low.
Vancouver’s average required rent fell 4.8% to $2,870, the lowest level since April 2022. Montreal and Ottawa averages fell by 3.0% and 0.2%, respectively, while Edmonton grew to $1,531 at an annual rate of 2.9%.
In the most affordable rental market, the average rent in Regina is at least $1,322, followed by $1,409 in Saskatoon.
Meanwhile, Quebec City saw the highest annual rent growth (+12%), with studio rents soaring 29% to $1,252.
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Last modified: March 11, 2025
