Canada asking rents fall to $2,008

A for rent sign is displayed on a house in Ottawa. THE CANADIAN PRESS/Sean Kilpatrick

A new report says March featured the largest drop for average asking rents in Canada in nearly five years.

The latest monthly analysis from Rentals.ca and Urbanation, which is based on asking rents across the former’s listings network, said prices reached an average of $2,008, down 5.3 per cent from March 2025.

It marked the 18th consecutive month of year-over-year declines. Meanwhile, prices also fell 1.1 per cent on a month-over-month basis from February.

“The Canadian rental market downturn has deepened, with rents in March falling at their fastest pace since COVID,” said Urbanation president Shaun Hildebrand in a press release.

“This shows in real-time the market impact from the declining population, coupled with ongoing affordability issues, heightened economic uncertainty, and record high apartment completions.”

Those factors have led to higher vacancy rates, tipping the scales back in renters’ favour following a post-pandemic surge in rental costs. Market watchers have noted that landlords in many cities are now increasingly dangling incentives to lure potential tenants, such as free rent for a couple months or waived parking fees.

An RBC Economics report earlier this month estimated the national rental vacancy rate in 2026 could surpass three per cent, the “threshold we believe marks a balanced market,” said economist Rachel Battaglia.

That would mark the third consecutive year of rising vacancy rates across Canada and the first time in a decade that the rate would exceed three per cent for a two-bedroom apartment.

“Canada’s rental market is experiencing a period of adjustment after years of unsustainable rent growth,” said Battaglia in the note.

“Though current headwinds will continue pulling vacancies higher in most markets near-term, we don’t see the rental correction extending far out into the future. Importantly, population growth should reaccelerate by 2028 once Canada’s immigration policy has recalibrated, bolstering demand for rental housing.”

The Rentals.ca and Urbanation report said national rents are now at their lowest level in 35 months, down 7.9 per cent compared with two years ago, while relatively flat compared with 2023 levels.

In March, asking rents for purpose-built apartments moved 3.9 per cent lower year-over-year to an average of $2,005, while asking rents for condominium apartments fell 6.9 per cent year-over-year to $2,077.

Average asks for house and townhouse rentals were down nine per cent to $1,990.

Measured by province, B.C. recorded the steepest decline in average apartment rents, which were down 4.8 per cent to $2,362, followed by Alberta, which saw a 4.6 per cent decrease to $1,642.

Ontario’s average ask decreased 4.4 per cent to $2,225, followed by Quebec’s decline of 1.7 per cent to $1,916.

Average asking rents rose in Nova Scotia by 3.9 per cent to $2,284. Rents moved 3.7 per cent higher in Saskatchewan to $1,385 and 3.4 per cent in Manitoba to $1,646.

Average apartment rents fell in all of Canada’s six largest cities, led by Calgary with a five per cent decrease to $1,818 and Toronto with a 4.7 per cent drop to $2,468.

Apartment rents fell 4.3 per cent in Vancouver from a year ago to $2,702, and 4.1 per cent in Ottawa to $2,127.

Edmonton, at an average price of $1,488, and Montreal, at $1,936, saw smaller year-over-year drops of 2.2 per cent and 1.6 per cent, respectively.

Sammy Hudes, The Canadian Press