The average rental unit asking price in Canada dropped by 4.8% in August compared to a year earlier, settling at $2,035. This decline represents the most significant year-over-year decrease since March, as reported in the latest monthly analysis from Rentals.ca and Urbanation.
For the 23rd consecutive month, average asking rents have continued to decrease annually, now down by seven percent compared to 2024. Despite this trend, rents remained relatively stable on a monthly basis, showing a marginal 0.1% decrease from July following four consecutive monthly increases during the spring and early summer.
Shaun Hildebrand, the president of Urbanation, highlighted the escalating trade tensions between Canada and the United States as a new factor contributing to uncertainty in the rental market. Hildebrand cautioned that the rental demand might weaken in the short term due to diminished employment opportunities and consumer confidence, while construction costs could rise, posing a threat to the housing supply.
In August, the average asking rent for purpose-built apartments fell by 3.3% year over year to $2,038, while asking rents for condominium apartments saw a steeper decline of 7.7% to $2,050.