Why now might be the best time to look for apartments and homes for rent in Canada
If you’re on the hunt for lower rent in Canada, now may be the ideal time to look.
Rentals.ca and Urbanation have released their June 2025 rent report, which offers a promising outlook for Canada’s rental market.
According to the data, rents have declined year-over-year for eight consecutive months. Asking rent prices averaged $2,129 in May, dropping 3.3 per cent compared to a year ago when rents reached a record high of $2,202.
The affordability of the rental market depends on the type of property or the number of bedrooms you’re looking for.
Broken down by type of property, the average price of an apartment for rent in Canada in May was $2,103, a two per cent decrease compared to last year. Condos for rent averaged $2,228 in May, a 3.6 per cent drop from last year. Houses and townhouses for rent experienced a seven per cent decrease, with an average price of $2,172 in May.
You can find the average rent prices based on the number of bedrooms in the table below.
Three-bedroom apartments for rent were the only kind of property to experience a spike in prices over the past year, with rents increasing by 3.9 per cent annually to an average of $2,743.
Canadians who are looking for the cheapest option may have to settle for studios, which saw the largest rent decline among condos, with a 5.1 per cent annual decrease to an average of $1,762.
“For purpose-built rentals, rents decreased the most over the past year for two-bedroom units (-3.9 per cent to $2,288),” reads the report.
Despite the dip in prices annually for eight straight months, the report found that rents are 5.7 per cent higher than two years ago and 12.6 per cent more expensive than three years ago.
“Average asking rents in Canada have increased by an average of 4.1 per cent annually over the past five years, exceeding wage growth, averaging approximately three per cent over the same period,” reads the report. “This indicates that rental affordability has worsened overall since COVID-19, despite recent softening in rents.”
Rentals.ca added that recent trends suggest rents are increasing this spring, rising by two per cent over the past three months. However, it does note that prices typically experience seasonal growth during the spring and summer months as more renters enter the market.
When it comes to rent by province, British Columbia and Ontario remain the most expensive despite price decreases.
“Average rents for purpose-built and condo rental apartments remained highest in B.C. and Ontario during May, despite annual decreases of 2.6 per cent (to $2,462) and 3.6 per cent (to $2,335), respectively,” reads the report.
Quebec and Alberta experienced moderate price drops in apartment rents over the past year, with decreases of 1.8 per cent to $1,964 and 2.4 per cent to $1,745, respectively.
Check out the full report for a breakdown of rent prices by city.
The report used data from Rentals.ca’s monthly listings, which differ from the numbers collected and published by the Canada Mortgage Housing Corporation (CMHC).