Average asking rents in Canada decreased by 2.3% year-over-year in December, dropping to an average of $2,060, marking a full year of decline and hitting their lowest point in 30 months. According to the latest report from Rentals.ca and Urbanation, December 2025 marked the 15th consecutive month of decreasing average asking rents across Rentals.ca’s listings network.
Throughout 2025, average asking rents in Canada saw a 3.1% decline, surpassing the annual drop experienced during the COVID-19 pandemic. Despite the 5.4% decrease compared to two years ago, rents still stand 14.1% higher than pre-pandemic levels in December 2019.
Shaun Hildebrand, president of Urbanation, attributed the rent decrease to a shift in demand and supply dynamics, which had previously driven rents upward between 2022 and 2024. Factors such as a record number of apartment completions, a slowdown in population growth, economic uncertainty, and affordability challenges have collectively contributed to the decline in rents. Hildebrand anticipates that rents will likely continue to decrease in the short term as these conditions persist.
The report highlighted that the decline in rents was led by secondary market units. House and townhouse rentals saw a 5% decrease to $2,071 in December, while asking rents for condominium apartments dropped by 4% year-over-year to $2,131. Asking rents for purpose-built apartments also decreased by 1% to an average of $2,049.
In terms of provinces, average apartment rents in British Columbia declined by 5.4% to $2,353 in December, while Ontario saw a 3.2% decrease to $2,257. Alberta and Quebec also experienced drops of 2.7% to $1,671 and 1.9% to $1,934, respectively. Conversely, Saskatchewan witnessed a 7.1% increase to $1,395, Nova Scotia rose by 1.8% to $2,268, and Manitoba increased by 1% to $1,633.
Among Canada’s six largest markets, Vancouver and Toronto experienced the most significant annual rent decreases for apartments in December, with declines of 7.9% to $2,654 and 5.1% to $2,498, respectively. Calgary saw a 5% decrease to $1,824, Montreal dropped by 2.3% to $1,952, Ottawa declined by 0.5% to $2,153, and Edmonton increased by 0.8% to $1,518.