New report: Rents in Canada record the largest monthly decline in 2025 amid slowing demand and declining population growth

Rentals.ca and Urbanation's monthly report revealed that the rental market in Canada continues to enter a clear slowdown phase, with November recording the largest monthly drop in average rents during 2025. According to the report, the average asking rent nationwide declined by 1.5% compared to October, marking the biggest decrease recorded this year.
Despite this noticeable decline, the report indicated that average rents are still about 3.4% higher compared to three years ago, but at the same time have fallen to their lowest level since June 2023, reflecting a gradual shift in market dynamics after years of continuous increases.

Annual declines in purpose-built apartments and condos

Data showed that the decline was not only seasonal but also extended to the year-over-year comparison between November 2024 and November 2025:
Purpose-built rentals:
The average rent dropped by 2% to reach $2,060.
Rented condo apartments:
Recorded a larger decrease of 3.7%, bringing the average rent to $2,157.
This decline reflects a decrease in tenants' affordability, coinciding with more supply available in some markets.

Widespread decline among provinces… with few exceptions

The report monitored a decline in average rents across most Canadian provinces, except:
Saskatchewan
Nova Scotia
The most notable decreases were recorded in the usually higher-cost provinces:
British Columbia (B.C.): – 6.4%
Alberta: – 4.3%
Ontario: – 3.5%
This variation shows that provinces with strong population growth and volatile labor markets are more sensitive to economic slowdowns.

Expectations of additional declines at the beginning of 2026

Sean Hildbrand, President of Urbanation, said current indicators point to continued declines in the coming months, based on three main factors:
The usual seasonal recession in winter, where population movement decreases and market activity slows.
Slowing demand coinciding with declining population growth rates, following recent federal restrictions on immigration and international students.
Economic uncertainty that makes tenants more cautious about moving to new homes or paying higher rents.
Hildbrand added that these factors may keep rents under pressure until early 2026, before the market begins to gradually regain balance if economic indicators improve.
Thus, the report reflects a noticeable shift in the Canadian rental market, which was one of the fastest-growing sectors in recent years, but today is entering a slowdown phase that redraws the contours of affordability and the balance of supply and demand across various provinces.