Rentals.ca and Urbanation have released their December 2025 national rent report, and the numbers point to a cooling rental market across much of Canada. From declining average rents to shifting demand and big differences across provinces, here’s a breakdown of the key trends renters and investors should be watching.
National Overview
Rents Fall to Lowest Level Since June 2023
Average asking rent in Canada dropped to $2,074 in November, marking a 3.1 percent year-over-year decline and the lowest level in over two years. Compared to November 2023, renters are paying about $100 less per month.
Even though rents have been falling for 14 straight months, they remain 3.4 percent higher than three years ago.
Seasonal demand is also cooling. Active renter inquiries declined for the fourth month in a row and are trending toward their lowest levels since 2021. Slower immigration, affordability pressures, and weak consumer confidence are playing a major role, while record apartment completions continue to increase competition for landlords.
Month Over Month: Largest Drop of 2025
Rents also fell 1.5 percent from October to November, the biggest monthly drop this year. The 12 month rolling trend shows a 3.2 percent annual decline, the steepest since October 2021.
Purpose-Built vs Condo Rentals
Purpose-built rentals continue to perform the best in terms of stability and affordability.
- Purpose-built average rent: $2,060 (down 2 percent YoY)
- Condo rentals: $2,157 (down 3.7 percent YoY)
- Secondary market rentals: $2,087 (down 5.2 percent YoY)
Unit Sizes
- One-bedroom rents: down 3.8 percent to $1,811
- Two-bedroom rentals: down 2.1 percent to $2,179
- Three-bedroom rentals: strongest performance, down only 0.4 percent to $2,503
Purpose-built three-bedroom units were one of the few categories to rise, increasing 2.5 percent annually to $2,743.
Provincial Trends
Ontario and B.C. Continue to See the Steepest Declines
Average apartment rents fell across most provinces except Saskatchewan (+0.5 percent) and Nova Scotia (+1.8 percent).
Largest annual rent declines:
- B.C.: -6.4 percent (to $2,362)
- Alberta: -4.3 percent (to $1,682)
- Ontario: -3.5 percent (to $2,270)
Both Ontario and B.C. have seen rents fall for three consecutive years, with overall three year declines of 5.2 percent and 2.6 percent, respectively. In contrast, Saskatchewan rents have surged 21.8 percent over the same period.
Major Market Breakdown
Toronto & Vancouver Hit Lowest Levels in Over 3 Years
All six major Canadian markets recorded annual rent declines, with the steepest drops in:
- Vancouver: -6.8 percent to $2,692
- Calgary: -5.9 percent to $1,844
- Toronto: -5.0 percent to $2,508
Toronto and Vancouver are now sitting at their lowest rental levels since 2022–2023. Calgary rents have also declined for 16 straight months.
Meanwhile:
- Ottawa rents are nearly flat (-0.7 percent YoY)
- Montreal: -3.3 percent
- Edmonton: -2.8 percent
Three Bedroom Strength
Three-bedroom rents rose in:
- Ottawa (+5 percent)
- Montreal (+2.5 percent)
- Edmonton (+1.9 percent)
Biggest declines:
- Vancouver three bedrooms: -8.8 percent
- Toronto two bedrooms: -8.3 percent
- Calgary one bedrooms: -6.8 percent
Most and Least Expensive Cities
In November, even the priciest markets saw average rents fall below $3,000:
- North Vancouver: $2,980
- Richmond: $2,609
- Coquitlam: $2,551
- North York & Oakville: $2,529
Most affordable markets include:
- Lloydminster: $1,229
- Fort McMurray: $1,285
- Medicine Hat: $1,355
- Regina: $1,372
- Sarnia (Ontario): $1,676
- Abbotsford (B.C.): $1,848
Fastest Rising & Sharpest Declines
Fastest rent growth
- Kingston: +21.8 percent (to $2,314)
- St. Albert (AB): +8 percent
- Longueuil: +6.6 percent
- Windsor: +6.5 percent
Steepest declines
Thirteen of the top 15 cities with the largest drops were in Ontario or B.C.
- East York: -19.1 percent
- New Westminster (B.C.): -16.2 percent
- Côte-Saint-Luc (QC): -16.2 percent
Shared Accommodation
Shared rentals in B.C., Alberta, Ontario and Quebec continue to fall, dropping 8.3 percent annually to $914, the lowest in more than two years.
Largest declines:
- Ontario: -9.4 percent (to $1,004)
- B.C.: -8.6 percent (to $1,072)
Vancouver saw the steepest drop at -12.5 percent, falling to $1,233.
Final Thoughts
Canada’s rental market is softening across almost all major markets, with monthly and yearly declines pointing to greater affordability than we’ve seen in years. Rising supply, slower population growth, and weakened demand are reshaping the rental landscape heading into 2026.
You can check out previous rent reports to compare longer term trends.
Canada Housing Market 
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