The average asking rent in Canada fell to $2,034 in September, with increased rental supply helping push prices lower across much of the country.
Canadian renters are seeing continued relief in the national rental market, with average asking rents declining for the 24th consecutive month in September, according to the latest National Rent Report from Rentals.ca and Urbanation.
The average asking rent for all residential property types fell to $2,034, down 4.2% from September 2025. Rents also edged down from August, when the national average stood at $2,035. The September figure represents the lowest level for that month since 2022.
Over the past two years, average asking rents have fallen 7.3%, while they remain 9.2% below the national peak of $2,202 recorded in May 2024.
Rental Prices Continue Their Two-Year Decline
The latest figures extend a remarkable reversal in Canada’s rental market.
The country experienced a prolonged period of rising rents before the trend began to change in late 2024. Since then, annual asking-rent growth has remained negative for 24 consecutive months.
The decline has been driven in part by an increase in rental housing supply, particularly in Canada’s largest urban markets. More available units have given renters greater choice and increased competition among landlords for tenants.
Rentals.ca and Urbanation have previously reported that new rental construction has been an important factor behind the cooling market.
Toronto and Vancouver Show Signs of Stabilization
While rents remain lower than a year ago in many major markets, some of Canada’s most expensive rental markets are showing early signs of stabilization.
Toronto and Vancouver were among the cities that experienced some of the sharpest declines during the rental-market correction. More recently, however, asking rents in both markets have shown signs of leveling out as the supply of available units changes.
The latest national report notes that Toronto and Vancouver have helped lead the market into the current correction and are now showing indications of recovery.
That does not mean rents have returned to affordable levels for all households. Both cities remain among Canada’s most expensive rental markets.
New Housing Supply Plays a Major Role
One of the main explanations for falling rents is the increase in available rental housing.
A recent analysis from Rentals.ca and Urbanation found that revisions to Statistics Canada’s population estimates point toward new housing supply, rather than a shrinking population, as the primary factor behind the recent softening in rents.
The increase in supply has given tenants more options and reduced some of the pricing pressure that landlords faced during the earlier period of rapid population growth.
However, the impact is not uniform across Canada. Markets with stronger supply growth have generally experienced larger declines, while some regions continue to see rents increase.
Some Canadian Cities Still See Rising Rents
The national decline does not mean rents are falling everywhere.
Statistics Canada’s quarterly rental data shows significant differences between Canadian metropolitan areas. In the second quarter of 2026, average asking rent for a two-bedroom apartment across Canada’s census metropolitan areas was $2,130, down 3.6% from a year earlier.
But some markets recorded increases. Thunder Bay, Sherbrooke, Halifax and Saskatoon were among the metropolitan areas where two-bedroom asking rents increased year over year.
Vancouver remained the most expensive major market in that dataset, followed by Toronto and Victoria.
Condo Rents Have Fallen More Sharply
Different types of rental properties have also experienced different trends.
The latest Rentals.ca report shows purpose-built rental properties have been relatively more resilient, with average rents down 3.3% year over year to $2,038.
Condo rents experienced a larger decline of 7.7%, falling to an average of $2,050. Houses and townhomes in the secondary rental market recorded an even larger annual decline of 8.3%, to $2,014.
The differences reflect changes in both supply and demand across the various segments of Canada’s rental market.
Renters Are Still Facing Affordability Pressure
Despite the two-year decline, housing affordability remains a major concern.
A lower national average does not necessarily mean that existing tenants are paying less. The Rentals.ca figures measure asking rents for available listings, meaning they primarily reflect prices faced by people entering or moving within the rental market.
Existing tenants with older leases may therefore experience a different trend from renters searching for a new home.
Rentals.ca’s recent renter survey also found that affordability remains a significant challenge, with many renters continuing to describe the search for housing as difficult.
Economic Uncertainty Could Affect the Market
The rental market is also being influenced by broader economic conditions.
Recent analysis from Rentals.ca and Urbanation has highlighted trade tensions and tariffs as another source of uncertainty. Cities with greater exposure to U.S. trade have experienced particularly notable rental declines, although supply and local housing conditions remain important factors.
If employment growth weakens in certain regions, rental demand could soften further. On the other hand, stronger population growth or a slowdown in new housing construction could eventually put upward pressure on rents again.
What Happens Next?
The key question for the Canadian rental market is whether the current decline will continue or begin to stabilize.
With rents already down substantially from their 2024 peak and some major markets showing signs of recovery, the pace of future declines could slow.
At the same time, continued additions to Canada’s rental housing supply could keep competition among landlords elevated, particularly in markets where new construction remains strong.
Conclusion
Canada’s rental market has now recorded 24 consecutive months of annual rent declines, with the national average asking rent reaching $2,034 in September.
The decline reflects a combination of increased rental supply, changing demand and cooling conditions in several major housing markets. Toronto and Vancouver, which experienced significant rent increases during the earlier housing boom, are now showing signs of stabilization after substantial declines.
However, the national figures mask major regional differences, and many renters continue to face affordability challenges. Whether rents continue falling or begin to stabilize will depend largely on the balance between new housing supply, population and employment trends, and broader economic conditions.