Average asking rents in Canada decreased by 2.3% year-over-year in December to reach an average of $2,060, marking a full year of decline as prices hit a 30-month low. The latest report from Rentals.ca and Urbanation revealed that December 2025 was the 15th consecutive month of decreasing average asking rents across Rentals.ca’s listings network. Throughout 2025, average asking rents in Canada dropped by 3.1%, exceeding the annual decline experienced during the COVID-19 pandemic.
Despite the 5.4% decrease compared to two years ago, rents remain 14.1% higher than the pre-pandemic levels in December 2019. Shaun Hildebrand, the president of Urbanation, attributed the decline in rents to a shift in demand and supply dynamics that had previously driven rents upward between 2022 and 2024. Factors such as a surge in apartment completions, a slowdown in population growth, economic uncertainty, and affordability challenges have collectively contributed to the rent decrease.
Looking ahead, Hildebrand anticipates that rents will continue to trend downward in the near future, given the persistence of current conditions. The report highlighted that rent declines were most pronounced in secondary market units. Average asking rents for house and townhouse rentals decreased by 5% to $2,071 in December, while rents for condominium apartments fell by 4% year-over-year to $2,131. Purpose-built apartment rents decreased by 1% year-over-year to an average of $2,049.
By province, average apartment rents in December saw a decline of 5.4% in British Columbia to $2,353 and a 3.2% decrease in Ontario to $2,257. Alberta and Quebec also experienced decreases of 2.7% to $1,671 and 1.9% to $1,934, respectively. Conversely, average asking rents increased by 7.1% in Saskatchewan to $1,395, by 1.8% in Nova Scotia to $2,268, and by 1% in Manitoba to $1,633.
Among Canada’s six largest markets, Vancouver experienced a significant annual rent decrease of 7.9% to $2,654, while Toronto saw a 5.1% decline to $2,498, both reaching their lowest levels since early 2022. Calgary’s average asking rents for apartments dropped by 5% to $1,824, Montreal saw a 2.3% decrease to $1,952, Ottawa’s average asking rent decreased by 0.5% to $2,153, and Edmonton witnessed a 0.8% increase to $1,518.