Average asking rents across Canada continued to fall in July, but a new report suggests the pace of the decline is slowing.
According to the latest National Rent Report from Rentals.ca and Urbanation, the average asking rent for all residential properties fell four per cent compared with July 2025, settling at $2,037. Despite the annual decline, rents increased by 0.2 per cent from June, marking the fourth consecutive monthly increase.
Urbanation president Shaun Hildebrand said the market appears to be stabilizing.
“Canada’s rental market is showing signs of stabilizing, but not yet recovering,” Hildebrand said.
He added that Toronto remains one of the most closely watched markets, with rents down just 0.6 per cent compared with last year and the number of listings continuing to decline.
Purpose-built rental apartments remained the strongest segment of the market, with asking rents falling 2.6 per cent annually to an average of $2,041. Condominium rents dropped 6.3 per cent, while rents for houses and townhomes fell 7.5 per cent.
Among the provinces, Ontario recorded the largest month-over-month increase, while annual declines remained concentrated in Ontario, British Columbia and Alberta. Nova Scotia continued to hold the distinction of having the highest apartment and condominium rents in the country, with an average monthly price of $2,377.
The report found that rents increased in Toronto, Calgary and Edmonton during July, while Vancouver and Montreal recorded declines.
Researchers say the combination of tighter supply and seasonal demand could signal a shift in Canada’s rental market in the months ahead.
