In July, the average asking rent in Canada declined 4.0% year-over-year to $2,037, marking the 22nd consecutive month of annual rent decreases. However, the pace of decline continues to ease, and rents rose month-over-month for a fourth straight month, including in Toronto, where annual rents were down just 0.6%, the smallest decline among the six largest markets, alongside signs of a tightening rental supply.
This month’s report also looks at Nova Scotia, which held its lead over B.C. as the most expensive province in the country for apartment and condo rents for a third straight month, a gap driven in part by high-priced lease-up listings and a larger share of bigger units in the province’s rental mix.
Please find the full press release attached.
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| National Rent Declines Slow as Toronto Shows Signs of Turnaround as Supply Tightens Toronto – August 6 2026 – The average asking rent for all residential properties in Canada declined 4.0% year-over-year in July to $2,037, marking the 22nd consecutive month of annual rent decreases, according to the latest National Rent Report from Rentals.ca and Urbanation. However, the pace of decline continued to ease, marking the smallest annual decline since February 2026. Rents were up 0.2% month-over-month in July, a fourth consecutive monthly increase since asking rents hit a 35-month low earlier this year. Over the past two years, rents have declined 7.5%, falling to their lowest July level since 2022.”Canada’s rental market is showing signs of stabilizing, but not yet recovering. While rents have risen for four straight months, this is typical seasonal momentum heading into the back-to-school period, with annual declines persisting across most of the country. Toronto remains the standout, with supply tightening and rents approaching positive annual territory, making it a market worth watching as a potential leading indicator,” said Shaun Hildebrand, President at Urbanation.Purpose-built rentals remained the most resilient segment of the market, with asking rents declining 2.6% annually to an average of $2,041, while three-bedroom purpose-built rents were essentially flat year-over-year. Condo rents fell 6.3% year-over-year to $2,063, led by a 9.6% annual decline in studio condo rents, while houses and townhomes saw the steepest annual decline among property types, down 7.5% to $2,007. Nationwide, the average asking rent for purpose-built and condominium apartments was $2,043 in July, up 0.3% from June. At the provincial level, Ontario recorded the largest monthly rent increase in the country, up 0.6% for all property types (0.8% for purpose-built and condo apartments), with smaller monthly gains also seen in British Columbia and Alberta, while Saskatchewan and Manitoba, the two provinces that had led rent growth over the past year, both slipped on a monthly basis. Annual apartment and condo rent declines remained concentrated in Canada’s largest provinces, led by Alberta (-4.3%), British Columbia (-4.1%) and Ontario (-3.7%), while Nova Scotia (+4.5%) and Manitoba (+1.5%) continued to post annual increases.Nova Scotia ($2,377) remained the most expensive province in the country for apartment and condo rents, edging out British Columbia ($2,357) for a third consecutive month. That gap is driven in part by a large number of high-priced listings in recently completed buildings still in lease-up, as well as a larger average unit size: two-bedroom-plus units made up 52% of Nova Scotia’s rental market in July, compared to 43% in B.C.Rents rose month-over-month in three of Canada’s six largest markets in July, led by Toronto (+1.6% to $2,577), followed by Calgary (+0.5%) and Edmonton (+0.1%), while Vancouver (-1.4%) and Montreal (-0.4%) saw rents move lower and Ottawa was roughly flat (-0.2%). The increase marked Toronto’s fourth consecutive monthly gain, leaving annual rents down just 0.6%, the smallest annual decline among the six largest markets and a further signal of a potential turnaround, with listings down roughly 6% year-over-year, pointing to a tightening supply picture. Calgary (-4.5%) and Vancouver (-4.5%) recorded the largest annual declines among the six largest markets, followed by Edmonton (-3.6%), while Montreal (-1.6%) and Ottawa (-2.4%) were comparatively more resilient. Double-digit rent movements outside the six largest markets remained concentrated in a handful of areas in July. Dartmouth (+13.1%) recorded the largest annual increase in the country, with notable gains also seen in Lloydminster (+11.3%), Welland (+6.9%) and North York (+5.1%). Double-digit declines continued to be concentrated in markets adjacent to Quebec and Ontario’s largest centres, led by Côte Saint-Luc (-12.9%), Abbotsford (-12.4%), Markham (-11.9%) and Longueuil (-10.9%). |
Niagara Falls, Ontario.