The average rental unit price in Canada dropped by 4.8% in August compared to the previous year, with the asking price averaging $2,035. This decline marks the largest year-over-year decrease since March, according to a recent report by Rentals.ca and Urbanation.
For 23 consecutive months, average asking rents have continued to fall, now down by seven percent compared to 2024. Despite this overall trend, rents remained relatively stable on a monthly basis, showing a marginal decrease of 0.1% from July following four consecutive monthly increases in the spring and early summer.
Shaun Hildebrand, the president of Urbanation, highlighted the impact of the escalating trade tensions between Canada and the United States on the rental market. He expressed concerns about potential decreases in demand due to lower employment rates and consumer confidence, as well as potential challenges in the supply chain caused by increased construction costs.
In August, asking rents for purpose-built apartments averaged $2,038, representing a 3.3% decline year over year. Similarly, asking rents for condominium apartments decreased by 7.7% to $2,050 during the same period.