In December, the average asking rents in Canada dropped by 2.3% compared to the previous year, settling at $2,060, marking a year-long trend of decline and hitting a 30-month low. The data from Rentals.ca and Urbanation revealed that this decline continued for the 15th consecutive month.
Throughout 2025, the average asking rents in Canada witnessed a 3.1% decrease, surpassing the decline seen during the COVID-19 pandemic. Despite the 5.4% decrease from two years prior, rents still stand 14.1% higher than pre-pandemic levels in December 2019.
Urbanation president Shaun Hildebrand attributed the rent decrease to a shift in demand and supply dynamics that had previously led to rent hikes between 2022 and 2024. Factors such as a surge in apartment completions, slowing population growth, economic uncertainty, and affordability challenges have collectively contributed to the downward trend in rents.
Looking ahead, the report suggests that rents are likely to continue their downward trajectory in the short term as these factors persist. The decline in rents has been more pronounced in secondary market units.
House and townhouse rental prices saw a 5% decrease to $2,071 in December, while rents for condominium apartments dropped by 4% year-over-year to $2,131. Meanwhile, purpose-built apartment rents experienced a 1% decrease year-over-year, averaging $2,049.
By province, average apartment rents in December saw a 5.4% decline in B.C. to $2,353, a 3.2% decrease in Ontario to $2,257, a 2.7% drop in Alberta to $1,671, and a 1.9% decrease in Quebec to $1,934. On the other hand, Saskatchewan saw a 7.1% increase to $1,395, while Nova Scotia and Manitoba experienced respective hikes of 1.8% to $2,268 and 1% to $1,633.
In Canada’s major markets, Vancouver and Toronto saw the most significant annual rent decreases for apartments in December, dropping by 7.9% to $2,654 and 5.1% to $2,498, respectively. Calgary and Montreal also witnessed declines of 5% to $1,824 and 2.3% to $1,952, while Ottawa’s average asking rent decreased by 0.5% to $2,153, and Edmonton saw a 0.8% increase to $1,518.