Rents are falling considerably faster in Canadian cities most exposed to U.S. tariffs, an early sign that weakening trade and employment could be adding pressure to already soft rental markets.

The 10 most tariff exposed markets tracked by Rentals.ca and Urbanation saw average asking rents decline 3% between January 2025 and August 2026, compared with a 0.8% decline across the 10 least exposed markets.

The analysis combines Rentals.ca listing data with the Canadian Chamber of Commerce Business Data Lab’s tariff exposure index, which measures local export intensity and dependence on the U.S. market.

Oshawa recorded the sharpest decline, with rents falling 8.9% since January 2025. Other highly exposed markets include Windsor, Hamilton, Kitchener-Cambridge-Waterloo, Brantford and Calgary.

The divergence comes as rents are already declining nationally. Average asking rent was $2,035 in August, down 4.8% from a year earlier.

Urbanation cautioned that tariffs are only one factor, with new supply and slower population growth continuing to drive much of the rental correction.

The trade dispute could also hit future supply. Structural steel framing costs have risen 7.2% since the first quarter of 2025, while purpose-built rental now accounts for more than 60% of new housing construction nationally.