In August, the average rental unit price in Canada dropped to $2,035, showing a 4.8% decrease from the previous year, marking the most significant year-over-year decline since March. This decline has continued for 23 consecutive months, with prices down by seven percent compared to 2024. While rents remained relatively stable on a monthly basis, experiencing a 0.1% decrease from July after four consecutive monthly increases during the spring and early summer.
Urbanation’s president, Shaun Hildebrand, highlighted the escalating trade tensions between Canada and the United States as a new uncertainty affecting the rental market. He expressed concerns that demand might weaken in the short term due to reduced employment and consumer confidence, while the supply could face challenges from potentially higher construction costs.
The average asking rents for purpose-built apartments saw a 3.3% decline year over year, reaching $2,038 last month. In comparison, the asking rents for condominium apartments dropped by 7.7% to $2,050.