The report shows that average rent prices dropped 4.4% year-over-year in January, landing at $2,100. This marks the fourth month in a row that prices have fallen.

However, this follows a period of 38 straight months of annual rent increases, with rents still 5.2% higher than two years ago and up 16.4% compared to three years ago.

“The downward trend for rents in Canada accelerated during the first month of 2025,” said Shaun Hildebrand, President of Urbanation. “Heightened downside risks for the economy, combined with declining international population inflows and multi-decade highs for apartment completions, suggest rents will continue to weaken in the months ahead. This will result in improved affordability for renters.”

The decline was mainly seen in the secondary rental market, with condominium rents dropping 6.5% to an average of $2,219, and rents for houses and townhomes falling 8.9% to $2,144.

Ontario sees the biggest drop in rents

Ontario experienced the largest decrease in rental prices, with average apartment rents falling by 5.2% to $2,329. Despite this drop, Ontario remains one of the most expensive places to rent in Canada, second only to British Columbia, where rents decreased by 2.6%, bringing the average rent to $2,463.

While many regions saw rent prices drop, others saw rents continue to climb. Manitoba, Saskatchewan, and Alberta all posted modest increases of 2-3%. Manitoba’s average rent reached $1,618, while Saskatchewan—Canada’s most affordable rental market—saw its average rise to $1,303.

In Quebec, rent prices were nearly flat, rising just 0.4% to an average of $1,972.

Here’s a look at the year-over-year rent increases in some of the country’s metropolitan areas:

asking rent August average rent average rent in canada average rent prices rentals.ca rentals.ca report Shaun Hildebrand Urbanation

Last modified: February 6, 2025