Average asking rents in Canada dropped by 2.3% year-over-year in December to an average of $2,060, marking a full year of declines with prices hitting a 30-month low. The latest report from Rentals.ca and Urbanation revealed that December 2025 was the 15th consecutive month where average asking rents across Rentals.ca’s listings network decreased. Throughout the entire year, average asking rents in Canada saw a 3.1% decline in 2025, surpassing the annual drop experienced during the COVID-19 pandemic.
Despite a 5.4% decrease compared to two years ago, rents are still 14.1% higher than pre-pandemic levels in December 2019. Shaun Hildebrand, president of Urbanation, attributed the downward trend in rents to a shift in demand and supply dynamics that had previously driven rent prices up between 2022 and 2024. Factors such as high apartment completions, slowing population growth, economic uncertainties, and affordability challenges have collectively contributed to the decrease in rents.
Hildebrand mentioned that rents are expected to continue declining in the short term as these conditions persist. The report highlighted that the reduction in rents was mainly led by secondary market units. House and townhouse rentals saw a 5% decrease to an average of $2,071 in December, while condominium apartment rents fell by 4% year-over-year to $2,131. Asking rents for purpose-built apartments dropped by 1% to an average of $2,049.
Provincially, average apartment rents in December decreased by 5.4% in British Columbia to $2,353, by 3.2% in Ontario to $2,257, by 2.7% in Alberta to $1,671, and by 1.9% in Quebec to $1,934. In contrast, rents increased by 7.1% in Saskatchewan to $1,395, by 1.8% in Nova Scotia to $2,268, and by 1% in Manitoba to $1,633.
Among Canada’s six largest markets, Vancouver experienced the steepest annual rent decrease for apartments, down by 7.9% to $2,654, while Toronto saw a 5.1% decline to $2,498, both reaching their lowest levels since early 2022. Calgary witnessed a 5% drop to $1,824, Montreal had a 2.3% decrease to $1,952, Ottawa’s average rent slightly decreased to $2,153, and Edmonton saw rents increase by 0.8% to $1,518.