The average asking price for rental units in Canada saw a 4.8% decline in August compared to the previous year, settling at $2,035. According to a recent report by Rentals.ca and Urbanation, this drop represents the most significant year-over-year decrease since March.
For the 23rd consecutive month, average asking rents have continued to decrease annually, with prices now 7% lower than in 2024. Although rents remained relatively stable on a monthly basis, experiencing only a 0.1% decrease from July after four consecutive monthly increases earlier in the year.
Shaun Hildebrand, the president of Urbanation, highlighted the escalating trade tensions between Canada and the United States as a new factor of uncertainty impacting the rental market. He expressed concerns about potential demand slowdown due to reduced employment and consumer confidence, coupled with the threat to supply posed by potentially higher construction costs.
In terms of specific rental types, asking rents for purpose-built apartments dropped by 3.3% year over year to an average of $2,038 in the last month, while asking rents for condominium apartments decreased by 7.7% to $2,050.