Canada’s rental market continued its cooling trend this fall, with October marking the 13th straight month of year-over-year rent declines, according to new data from Rentals.ca and Urbanation. While rents are still elevated compared to pre-pandemic levels, the pace of decline is slowing, suggesting the market may be nearing a floor.
National Rent Trends Show Slower Declines
Average asking rents across Canada fell 2.2% year-over-year in October to $2,105, the smallest annual decline in nearly a year. Compared to two years ago, rents are down 3.4%, but remain 6.2% higher than in 2022 and 14% higher than in October 2019.
Renter demand has also pulled back. October marked the third consecutive month of weaker activity, placing the country on track for one of the slowest winter rental seasons in recent years.
Month-over-month, national rents dipped 0.9%, hitting an eight-month low.
Purpose-Built Rentals Remain Most Stable
Purpose-built rental apartments showed the strongest price stability, with average asking rents declining only 0.7% year-over-year to $2,085.
In contrast:
- Condo rentals saw a 4.3% annual decline
- Other secondary rentals fell 4.7% annually
- Despite drops, both condo and secondary rentals still rent for more than purpose-built apartments on average
Where Rents Are Falling the Most
Western Canada led the national decline:
- British Columbia: -5.8% YoY
- Alberta: -5.3% YoY
Meanwhile, central provinces saw rents rise:
- Saskatchewan: +1.8%
- Manitoba: +1.8%
Major cities also posted multi-year lows:
- Vancouver rents fell sharply, driven by weakness in condo and studio units
- Toronto saw one of its steepest rent corrections in recent years
Shared accommodation rents dropped to a 28-month low, particularly in B.C. and Alberta.
Studio Condo Rents Plunge 14%
The steepest decline came from studio condo units, where average asking rents fell 14.2% year-over-year to $1,609.
Three-bedroom purpose-built rentals were the one bright spot, rising 3.5% to $2,767.
Across all property types:
- 1-bedroom: $1,822 (-3.4%)
- 2-bedroom: $2,200 (-1.7%)
- 3-bedroom: $2,539 (-0.2%)
- 4-bedroom+: $2,944 (-2.5%)
- Studios: $1,610 (-1.5%)
Three-bedroom units remain the most price-stable across the market.
What This Means for Renters and the Market
With demand softening and annual declines narrowing, Canada’s rental market is shifting into a more balanced phase. Seasonal slowdown and increased listings are giving renters more options, especially in Western provinces and major urban hubs.
However, rents remain significantly higher than pre-pandemic levels, and affordability continues to be a nationwide concern heading into 2026.
Source: Rentals.ca November Report
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