Toronto – March 9, 2026 – The average asking rent for all residential properties in Canada declined 2.8% year-over-year in February to $2,030, marking the 17th consecutive month of annual rent decreases, according to the latest National Rent Report from Rentals.ca and Urbanation. Rents fell to their lowest level in 33 months and were down 7.4% compared to two years ago, while remaining 2.3% higher than three years ago.
“Canada is undergoing its largest downturn in rents in recent history,” said Shaun Hildebrand, President of Urbanation. “The supply that everyone has been waiting so long for has arrived at a time when demand has slowed, creating a rare opportunity for renters to take advantage of better affordability.”
The seasonal slowdown in the rental market was more pronounced than usual in February, with asking rents declining 1.3% month-over-month, the largest decrease recorded in February since 2020. Despite the national decline, several major markets, including Vancouver, Ottawa, Calgary, Edmonton, and Montreal, recorded modest monthly rent increases.
Lower rents combined with moderate wage growth have contributed to improving rental affordability across the country. In February, the average rent represented 29% of renter household income, falling below the industry’s 30% affordability benchmark for the first time in more than six years.
Rent declines over the past year continued to be led by the secondary market. Condo rents fell 5.1% annually to an average of $2,082, while other secondary market units declined 4.5% to $2,009. Purpose-built rental apartments remained the most resilient segment, with average rents declining 1.9% year-over-year to $2,030. Across all property types, one-bedroom rents posted the largest annual decrease, falling 3.5% to $1,781, while three-bedroom rents were the only segment to record growth, rising 0.6% to $2,486.
At the provincial level, annual rent declines were concentrated in Canada’s largest provinces. Average apartment rents fell 4.4% in Alberta, 4.3% in Ontario, and 4.2% in British Columbia, while Quebec recorded a 3.1% annual decline. Saskatchewan was the only province to record notable growth, with apartment rents increasing 3.3% year-over-year to an average of $1,373.
Among Canada’s six largest rental markets, average apartment rents declined year-over-year across all cities. Toronto recorded the largest declines across most unit types, with studio rents falling 7.9%, one-bedroom rents dropping 6.9%, and two-bedroom rents decreasing 7.1%. Vancouver posted the steepest decline for three-bedroom apartments at 8.8%. Despite annual decreases, most major markets recorded slight rent increases compared to January, led by Vancouver (+1.3%), Ottawa (+1.1%), Montreal (+0.7%), Calgary (+0.1%), and Edmonton (+0.9%).
The average asking rent for shared accommodations across British Columbia, Alberta, Ontario, and Quebec declined 6.6% annually in February to $900. Shared accommodation rents fell most in British Columbia (-10.1%) and Ontario (-8.3%), while Ottawa (+5.6%) and Edmonton (+2.0%) recorded increases.
The data includes single-detached homes, semi-detached homes, townhouses, condominium apartments, rental apartments, and basement apartments. Outlier listings and single-room rentals are excluded.
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