The average national asking rent fell four per cent in July compared with the same month last year, landing at $2,037 — marking the 22nd consecutive month of year-over-year declines, according to the latest monthly analysis from Rentals.ca and Urbanation released this week.
A Long Slide, With a Slowing Pace
Asking rents have now declined 7.5 per cent over the past two years. Yet July’s annual drop was the smallest recorded since February, and month-over-month prices continued to inch upward — rising 0.2 per cent from June, the fourth straight monthly increase.
Urbanation president Shaun Hildebrand struck a cautious note in assessing the data. “Canada’s rental market is showing signs of stabilizing, but not yet recovering,” he said in a news release accompanying the report. He attributed the recent monthly gains largely to seasonal momentum tied to the back-to-school period, noting that annual declines persist across most of the country.
Toronto Emerges as a Market to Watch
Among Canada’s major urban markets, Toronto is drawing particular attention from analysts. Apartment and condo rents in the city rose 1.6 per cent from June to reach $2,577, while the year-over-year decline narrowed to just 0.6 per cent — the smallest annual drop of any major Canadian market.
The Rentals.ca and Urbanation report described this as “a further step towards an emerging turnaround” in Toronto’s rental market, pointing to tightening supply as fewer new condominium units come to market, alongside pent-up demand being released as affordability improves relative to recent peaks. Hildebrand flagged Toronto as a potential leading indicator for broader national trends.
City-by-City Breakdown
Vancouver retained its standing as the most expensive municipal rental market in Canada, with an average asking rent of $2,677 for apartments and condos — down 4.5 per cent year-over-year and 1.4 per cent from June alone.
Other major cities recorded the following year-over-year changes in average asking rents:
By Property Type
Nationally, purpose-built apartments saw asking rents fall 2.6 per cent year-over-year to an average of $2,041 in July. Condominium apartments recorded a steeper annual decline of 6.3 per cent, averaging $2,063. Secondary market units — including houses and townhouses — experienced the sharpest drop of all property types, falling 7.5 per cent annually to an average of $2,007.
