The average rental unit asking price in Canada dropped by 4.8% in August compared to a year ago, hitting $2,035, according to a recent report by Rentals.ca and Urbanation. This decline represents the largest year-over-year decrease since March.
For the 23rd consecutive month, average asking rents have continued to decline, now standing at a seven percent decrease compared to 2024. Although rents remained relatively stable on a monthly basis, experiencing a mere 0.1% decrease from July following four consecutive monthly increases earlier in the year.
Shaun Hildebrand, the president of Urbanation, highlights the escalating trade tensions between Canada and the United States as a new factor of uncertainty in the rental market. He cautions that demand may decrease in the short term due to weakened employment and consumer confidence, while potential higher construction costs threaten the rental supply.
In August, asking rents for purpose-built apartments fell by 3.3% year over year to an average of $2,038, while asking rents for condominium apartments saw a sharper decline of 7.7% to $2,050.