Average Asking Rents in Canada Hit 31-Month Low in February Report

Canada’s rental market continued its slow reset in January, according to the latest National Rent Report from Rentals.ca and Urbanation.

Credit: Rentals.ca

Average asking rents fell for the 16th straight month, landing at $2,057, the lowest level seen in 31 months. The year-over-year decline came in at 2.0%, the smallest drop since November 2024, signalling that while rents are still easing, the pace of decline is moderating.

Here are the other highlights of the report:

The average rental listing shrank to 857 square feet, down from 885 square feet a year ago and 943 square feet two years ago. Smaller unit sizes have helped bring down headline rents, even as overall pricing pressure remains.
Despite lower average rents, asking rents measured per square foot increased 1.4% year over year to $2.46. On this basis, rents are 15.7% higher than three years ago, based on data covering more than 80% of listings.
The national rent-to-income ratio fell to 29.5%, dropping below the 30% affordability benchmark for the first time in six years and reaching its lowest level since before the pandemic.

All six of Canada’s largest rental markets saw annual drops. Vancouver rents fell 9.2% to $2,630, the lowest since February 2022. Toronto declined 4.6% to $2,495, and Calgary dropped 5.7% to $1,815. Rents also fell in Ottawa (-4.8%), Montreal (-3.7%), and Edmonton (-2.6%), though Edmonton remains nearly 18% higher than three years ago.
Condo rents declined 5.7% to $2,093, while other secondary market units fell 3.1% to $2,078. Purpose-built rentals proved more resilient, edging down just 1.0% to $2,049.
Across all unit types, three-bedroom rents were the only segment to increase, rising 1.1% year over year to an average of $2,506.
The largest declines occurred in British Columbia (-4.7%), Alberta (-4.3%), Ontario (-3.3%), and Quebec (-2.6%). Saskatchewan remained the exception, with rents up 4.6% annually and the lowest average apartment rent nationally at $1,371.

This report uses monthly asking rents from the Rentals.ca Network of Internet Listings Services, covering vacant units across both primary and secondary rental markets. Unlike CMHC data, which reflects average spending across all rental stock, this dataset captures current market rents faced by new tenants.