In August, the average rental unit price in Canada dropped to $2,035, showing a 4.8% decrease from the previous year, according to a recent report by Rentals.ca and Urbanation. This decline marks the most significant year-over-year decrease since March. Average rents have been on a downward trend for 23 consecutive months, with a 7% decrease compared to 2024.
While rents remained relatively stable on a monthly basis, experiencing a slight 0.1% decrease from July after several 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 affecting the rental market. He expressed concerns that lower employment rates and consumer confidence could dampen demand in the short term, while potential increases in construction costs could threaten supply.
The report also revealed that asking rents for purpose-built apartments saw a 3.3% decline year over year, with an average price of $2,038 last month. Additionally, asking rents for condominium apartments decreased by 7.7% to $2,050.