Average rents across Canada continued to decline annually in July, but a fourth consecutive monthly increase provided evidence that the rental market may have found a bottom.

The average asking rent for all property types was $2,037, down four per cent from July 2025, according to the National Rent Report from Rentals.ca and Urbanation. It was the 22nd consecutive month of annual declines, although the decrease was the smallest since February.

Rents increased 0.2 per cent from June, extending monthly gains that began after the national average reached a 35-month low in March.

“Canada’s rental market is showing signs of stabilizing, but not yet recovering,” Urbanation president Shaun Hildebrand said in a news release.

“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.”

The provincial results show stabilization remains uneven. Average asking rents for purpose-built and condominium apartments increased 0.8 per cent from June in Ontario, marking the province’s third consecutive monthly gain since reaching a 46-month low in April. Despite that momentum, Ontario rents remained 3.7 per cent below year-earlier levels.

Annual apartment and condominium rents fell 4.3 per cent in Alberta and 4.1 per cent in British Columbia, the largest provincial decreases. B.C. remained expensive, averaging $2,357.

Nova Scotia moved in the opposite direction. Its average apartment and condominium asking rent rose 4.5 per cent annually and 0.7 per cent monthly to $2,377, making it the most expensive province for a third consecutive month.

The report said Nova Scotia’s average was lifted by newer, higher-priced listings and a larger share of two- and three-bedroom units. Larger apartments represented 52 per cent of listings there, compared with 43 per cent in B.C.

Purpose-built rentals were the most resilient property type, declining 2.6 per cent annually to $2,041. Condominium rents fell 6.3 per cent to $2,063, while houses and townhomes recorded the steepest decline, falling 7.5 per cent to $2,007.

The figures suggest the correction is losing momentum, but annual rent growth has not yet returned across most of Canada.