In August, the average asking price for a rental property in Canada was $2,035, showing a 4.8% decline from the previous year, marking the most significant year-over-year drop since March. This information comes from a recent report by Rentals.ca and Urbanation.
For 23 consecutive months, the average asking rents have been decreasing year over year, with a current decrease of seven percent compared to 2024. Rents remained relatively stable on a monthly basis, experiencing a marginal 0.1% decrease from July following 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 cautioned that lower employment rates and consumer confidence might lead to a slowdown in demand in the short term, while potential higher construction costs could threaten the supply side.
In terms of specific rental categories, asking rents for purpose-built apartments dropped by 3.3% year over year to an average of $2,038 in the last month. Similarly, asking rents for condominium apartments saw a more significant decline of 7.7%, settling at $2,050.