Average rents in Canada are still falling. This trend represents a major shift in the rental landscape during an economically turbulent time. Rentals.ca and Urbanation reported on September 8, 2025. It indicates that rental rates fell an average of 2.3 percent in August from a year earlier, the 11th consecutive month of year-over-year decreases.
At the peak of the COVID-19 pandemic, average rents for the entire country fell significantly. With an economic turnaround, rents began to accelerate once more by the summer of 2021. Average rents exploded by historic proportions. By last year, they had risen from less than $1,700 a month to over $2,200. Rentals by Province According to the recent Canadian Rental Report, the average national rental rate has reached an astounding $2,137 for the month of August 2025.
The increase in average asking rents is not similar across the country. Condo rents fell 3.7 percent in August as well. This decline was significant given that it was compared to the same month one year ago. Along the same lines, purpose-built rentals decreased by 0.4 percent over this period.
Regional disparities are glaringly obvious. In Canada’s largest urban centers such as Vancouver, Calgary and Toronto, they are seeing some of the largest drops in rental rates. Only Vancouver reported a year-over-year average rent decrease, with an unusually sharp 9.3 per cent drop. Calgary was not far behind, with a 9.5 per cent drop, and even Toronto saw a 3.3 per cent decline.
The average rental rate has increased one percent since the beginning of 2023. This is a significant trend worth noting. This shows that we’re in a tight rental market, but that short-term volatility might mislead understanding of long-term trends.
