In August, the average rental unit asking price in Canada dropped to $2,035, a 4.8% decrease from the previous year. This decline represents the largest year-over-year drop since March, according to a recent report by Rentals.ca and Urbanation.
For 23 consecutive months, average asking rents have been decreasing annually, with prices down by seven percent compared to 2024. Despite this, rents remained relatively stable on a monthly basis, showing a marginal 0.1% decrease from July following four consecutive monthly increases during 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 source of uncertainty for the rental market. He expressed concerns that demand might weaken in the short term due to reduced employment and consumer confidence, while the supply could be impacted by potentially higher construction costs.
In August, asking rents for purpose-built apartments saw a 3.3% decline year over year, averaging $2,038. Similarly, asking rents for condominium apartments dropped by 7.7% to $2,050.
