Canada’s rental market is showing signs of cooling, but affordability challenges remain.
According to the latest National Rent Report from Rentals.ca and Urbanation, the average asking rent across all residential property types in May was $2,129, representing a slight 0.1 per cent increase from April, but 3.3 per cent lower than the same time last year. That marks the eighth straight month of year-over-year rent declines following a record high of $2,202 in May 2024.
“The easing in rents this year across most parts of the country is a positive for housing affordability in Canada,” said Shaun Hildebrand, president of Urbanation.
He cited a surge in new apartment completions, slower population growth and economic uncertainty as contributing factors.
Despite recent declines, average rents remain 5.7 per cent higher than two years ago and 12.6 per cent above 2022 levels, outpacing average wage growth.
In May, condo rents rose 0.8 per cent to $2,192, while purpose-built rentals dipped 0.1 per cent to $2,117. Three-bedroom purpose-built units saw the biggest annual rent hike, rising 3.9 per cent to $2,743. Shared accommodation rents averaged $945, down 4.7 per cent year-over-year.
Provincially, Saskatchewan led rent growth at 3.9 per cent, while Ontario and British Columbia continued to have the highest overall rents despite declines. Among major cities, Calgary posted the sharpest annual rent drop at 7.9 per cent.
The full National Rent Report is available at rentals.ca.
(Written by: Joseph Goden)