The average cost to rent a property in Canada during August stood at $2,035, reflecting a 4.8% decline compared to the previous year. According to a recent monthly report by Rentals.ca and Urbanation, this drop represents the most significant year-over-year decrease since March.
For the past 23 months, the average rental prices have continued to decrease annually, now showing a seven percent decline compared to 2024. While rents remained relatively stable on a monthly basis, experiencing a marginal 0.1% decrease from July after four consecutive months of increases in the spring and early summer.
Shaun Hildebrand, the president of Urbanation, highlighted the escalating trade tensions between Canada and the United States as a new factor influencing the rental market’s uncertainty. He expressed concerns that lower employment rates and consumer confidence could dampen demand in the short term, while potential rises in construction costs may threaten the rental supply.
In August, the average asking rent for purpose-built apartments dropped by 3.3% year over year to $2,038, while condominium apartment rents decreased by 7.7% to $2,050.