The average rental price for units in Canada saw a decrease in August, with the average asking price at $2,035, down by 4.8% compared to the previous year. This decline marks the most significant year-over-year drop since March, according to a recent report by Rentals.ca and Urbanation.
For the 23rd consecutive month, average asking rents have shown a decrease compared to the previous year, with prices down by seven percent compared to 2024. Despite this trend, rents remained relatively stable on a monthly basis, experiencing only a 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 introducing uncertainty into 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 the supply side of the market.
In terms of specific rental categories, the average asking rent for purpose-built apartments dropped by 3.3% year over year to $2,038 in the previous month. Similarly, asking rents for condominium apartments decreased by 7.7% to $2,050.