Canadian apartment rents fell again in December, marking a 15th-consecutive month of year-over-year declines nationwide.

Average asking rents for all residential property types dropped to $2,060 in December, down 2.3% year over year and marking the lowest level in about two-and-a-half years, according to the latest Rentals.ca and Urbanation rent report. Rents are now 5.4% lower than they were two years ago, although they remain 14.1% higher than pre-pandemic levels recorded in December 2019.

Urbanation president Shaun Hildebrand said in a news release that demand and supply factors that were pushing rents higher between 2022 and 2024 reversed last year.

“A combination of record-high apartment completions, population growth slowing down, economic uncertainty, and affordability challenges has worked together to push down rents,” Hildebrand said in a press release on Monday.

“Looking ahead, rents are likely to continue trending down in the near-term as these conditions persist.”

The annual decline in 2025 was pronounced, with average asking rents falling 3.1% over the year — a steeper drop than those seen during the COVID-19 pandemic in 2020 and 2021. Affordability constraints following sharp rent increases between 2022 and 2024, slower population growth, declining numbers of non-permanent residents and record apartment completions all contributed to downward pressure on rents.

Secondary-market units saw the largest declines, with condominium rents falling 4% year over year to an average of $2,131, while rents for houses and townhouses declined 5.0% to $2,071. Purpose-built apartment rents were more stable, slipping 1% annually to $2,049, although incentives such as free rent periods continued to reduce effective rents.

By unit type, one-bedroom rents declined 3.1% year over year to $1,798, while two-bedroom rents fell 1.6% to $2,166. Three-bedroom rents edged up slightly, increasing 0.2% to an average of $2,501, driven by continued demand for larger units.

Regionally, B.C., Ontario and Alberta recorded some of the steepest rent declines, while Saskatchewan remained the strongest-performing province, posting year-over-year apartment rent growth of 7.1% and maintaining average rents well below the national level.

Among major cities, apartment rents in Vancouver and Toronto fell to their lowest levels since early 2022, with two-year declines of more than 13% and 11%, respectively. Edmonton was the only major market to record rent growth in 2025, supported by continued population inflows and comparatively strong affordability.

Looking ahead to 2026, rental demand is expected to show seasonal improvement beginning in January, but affordability challenges, reduced mobility and slower in-migration are likely to continue shaping Canada’s rental market.

Rentals.ca and Urbanation evaluated rents in single and semi-detached homes, townhouses, condo apartments rented out by their owners, rental apartments and basement suites.

The two organizations are related entities.

Graphic: Courtesy of Rentals.ca and Urbanation