TORONTO – Canada’s rental market may finally be nearing a turning point after nearly two years of falling prices, according to the latest National Rent Report released by Rentals.ca and Urbanation.
The report found that the average asking rent for all residential properties across Canada fell 4.0 per cent year-over-year in July, dropping to $2,037. While that marks the 22nd consecutive month of annual declines, the pace of the slowdown has eased significantly. It is the smallest year-over-year decrease recorded since February.
National rents also increased 0.2 per cent from June, extending a four-month streak of monthly gains after reaching a nearly three-year low earlier this year. Despite the recent increases, average asking rents remain 7.5 per cent lower than they were two years ago, making this the lowest average July rent since 2022.
“Canada’s rental market is showing signs of stabilizing, but not yet recovering,” said Shaun Hildebrand, President of Urbanation. He noted that while seasonal demand ahead of the back-to-school period is helping lift rents, annual declines continue across most of the country. Toronto, however, is emerging as a market to watch as rental supply tightens.
Purpose-built rental apartments remained the strongest-performing segment of the market, with asking rents slipping just 2.6 per cent over the past year to an average of $2,041. Condominium rentals experienced steeper declines, falling 6.3 per cent, while houses and townhomes posted the largest annual drop at 7.5 per cent.
Ontario Posts Strongest Monthly Increase
Ontario recorded the largest monthly rent increase of any province in July, with average asking rents climbing 0.6 per cent across all residential property types. Apartment and condominium rents increased an even stronger 0.8 per cent.
Despite that monthly improvement, Ontario rents remain 3.7 per cent lower than a year ago, although the province performed better than Alberta (-4.3 per cent) and British Columbia (-4.1 per cent).
Nova Scotia continued to have the country’s highest apartment rents at $2,377, narrowly surpassing British Columbia at $2,357 for the third consecutive month.
Toronto Leads Major Markets
Among Canada’s six largest rental markets, Toronto recorded the strongest monthly increase, with asking rents rising 1.6 per cent to $2,577.
The increase marked Toronto’s fourth consecutive monthly gain, leaving rents just 0.6 per cent below last year’s levels—the smallest annual decline among Canada’s largest cities. According to the report, available rental listings in Toronto have also fallen by roughly 6 per cent over the past year, suggesting supply is beginning to tighten.
By comparison, annual rent declines remained more pronounced in Calgary (-4.5 per cent), Vancouver (-4.5 per cent) and Edmonton (-3.6 per cent). Montreal (-1.6 per cent) and Ottawa (-2.4 per cent) experienced smaller year-over-year declines.
Regional Trends Continue
Outside Canada’s largest metropolitan areas, some communities continued to see significant rent changes.
Dartmouth, Nova Scotia, recorded the country’s largest annual increase at 13.1 per cent, followed by Lloydminster (11.3 per cent). On the other end of the spectrum, the largest declines were reported in Côte Saint-Luc, Quebec (-12.9 per cent), Abbotsford, British Columbia (-12.4 per cent), Markham (-11.9 per cent) and Longueuil, Quebec (-10.9 per cent).
While Canada’s rental market has yet to fully recover, the report suggests the prolonged decline in rents may be slowing, with Ontario—and particularly Toronto—showing early signs that rental demand is beginning to outpace available supply.
Read the full National Rent Report: Rentals.ca National Rent Report (July 2026)
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