Story summary
Average asking rents across Canada fell by 4.2% in September compared to the previous year, marking the lowest level since 2022 and the 24th consecutive month of decline. The report from Rentals.ca and Urbanation noted that Canadian rental prices peaked at $2,202 per unit in May 2024 before steadily dropping. In September 2025, average rents stood at $2,034, representing a 9.2% decrease from the peak in May 2024.
This prolonged downturn is unprecedented in recent history and primarily driven by an oversupply of rental units in major cities like Toronto and Vancouver. According to Urbanation President Shaun Hildebrand, rents are beginning to stabilize as demand recovers post-peak. In British Columbia specifically, average asking rent prices decreased by 2.9% in September alone, continuing a trend of two years of annual declines.
Despite the overall decline in rental costs, Statistics Canada reports that weekly earnings have risen by 19.4% over the past five years, suggesting improved affordability for renters despite ongoing market challenges.
Written for “Canadian Rent Decline Continues” on 2026-10-08,
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Average asking rent down 2.9% in B.C. in September, marking 2 years of decreases
asserted
rent → ask → decreases
Average asking prices in September across Canada were down 7.3% over the last 2 years
The average asking price for a rental unit in Canada in September was $2,034, down 4.2 per cent compared with a year ago.
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price → compare → September
A monthly report from Rentals.ca and Urbanation said the figures mark two full years of annual declines, the longest downturn the Canadian rental market has experienced in recent history.
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market → say → history
Average asking rent prices in September were down 7.3 per cent over the past two years, and 9.2 per cent below the peak of $2,202 in May 2024.
uncertain
prices → ask → May
The report also highlighted figures from Statistics Canada that show average weekly earnings have risen 19.4 per cent over the past five years, signifying a general improvement in rental affordability.
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earnings → highlight → affordability
Rents edged slightly lower on a monthly basis, down by $1 compared with $2,035 in August, a second consecutive monthly decrease.
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Rents → edge → August
The report said this is part of a typical seasonal pattern where demand rises in the spring and summer and begins to ease in the fall.
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demand → say → fall
Asking rents drop again, but B.C. remains among Canada's most expensive markets
Backlash over rental prices at Sen̓áḵw development in Vancouver
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B.C. → ask → Vancouver
In contrast, other provinces saw increases, including 1.4 per cent rises in both Nova Scotia and Saskatchewan.
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provinces → see → Scotia
On a per-square-foot basis, average asking rents in Canada's six largest markets came in at $2.48, falling 1.5 per cent from September 2025.
Asking rents for purpose-built apartments fell 2.7 per cent on an annual basis to an average of $2,036 in September, while asking rents for condominium apartments decreased 7.8 per cent to $2,052.
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rents → come → 2,052
Rental prices for purpose-built apartments saw the smallest annual decline across all property types.
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prices → build → types
Condo rents saw the steepest declines, led by a 9.6 per cent drop in studio condo rents.
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rents → see → rents
Other secondary market units like houses and townhomes fell 7.4 per cent year-over-year to $2,016.
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units → fall → 2,016
The report said rental markets in Toronto and Vancouver are showing signs of stability though after rents hit their lowest level in five years.
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rents → say → years
"Our research shows supply has been the main driver of this correction, and in key markets like Toronto and Vancouver, new supply is moving past its peak," Urbanation president Shaun Hildebrand said in a statement.
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Hildebrand → show → statement
"Rents in both cities have trended higher over the past six months, and annual declines have narrowed significantly as renters come off the sidelines.
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renters → trend → sidelines
Where Toronto and Vancouver go, the rest of the country follows.
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rest → go → country
"
A few factors support an "upcoming return to positive rent growth" in those cities, the report said.
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report → support → cities
This includes the fact that construction inventory has peaked, data revisions show a modest increase in populations, and both cities are relatively less exposed to tariffs across their respective labour markets.
"
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cities → include → markets
In the near term, more affordable rents and move-in incentives are releasing pent-up demand from delayed household formation, as higher rents in previous years led to prospective renters living with parents or roommates for longer," the report said.
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report → move → parents
The Aporia
