Biggest cities see broad declines, led by Calgary and Toronto
Average asking rents across Canada fell to their lowest level in nearly three years in March, according to a new report, as slowing population growth and a wave of newly completed apartments continued to push landlords into retreat.
The latest monthly analysis from Rentals.ca and Urbanation, based on asking rents across the company’s listings network, said prices reached an average of $2,008, down 5.3% from March 2025. It marked the 18th consecutive month of year-over-year declines, while prices also fell 1.1% on a month-over-month basis from February.
The year-over-year decline of $112, or 5.3%, was the largest in nearly five years.
Market in freefall
Urbanation president Shaun Hildebrand said the depth of the downturn reflects forces that have been building since the end of the pandemic boom.
“The Canadian rental market downturn has deepened, with rents in March falling at their fastest pace since COVID,” Hildebrand said in a press release. “This shows in real-time the market impact from the declining population, coupled with ongoing affordability issues, heightened economic uncertainty, and record high apartment completions.”
Those factors have led to higher vacancy rates, shifting conditions back in renters’ favour after a post-pandemic surge in rental costs. Market watchers say landlords in many cities are increasingly offering incentives to attract tenants, including several months of free rent or waived parking fees.
Declines in some provinces
The declines were not uniform across the country. B.C. recorded the steepest drop in average apartment rents, down 4.8% to $2,362, followed by Alberta at 4.6% to $1,642. Ontario’s average asking rent decreased 4.4% to $2,225, while Quebec fell 1.7% to $1,916.
Not all provinces saw declines. Apartment rents increased in Nova Scotia (+3.9% to $2,284), Saskatchewan (+3.7% to $1,385), and Manitoba (+3.4% to $1,646). Saskatchewan has also posted the largest rent increase over the past three years, up 26.2% since March 2023.
City-by-city picture
Average apartment rents fell in all of Canada’s six largest cities, led by Calgary at 5% to $1,818 and Toronto at 4.7% to $2,468. Vancouver rents declined 4.3% to $2,702, while Ottawa fell 4.1% to $2,127. Edmonton, at $1,488, and Montreal, at $1,936, posted smaller year-over-year drops of 2.2% and 1.6%, respectively.
Among suburban markets near major cities, double-digit declines were recorded in Côte Saint-Luc (-19.9%), Richmond (-16%), Longueuil (-12%), Brossard (-11.7%), Oakville (-11.5%), New Westminster (-11.3%), Coquitlam (-11%), Burnaby (-10.6%), and Gatineau (-10.2%).
Outlook
An RBC Economics report estimated Canada’s national rental vacancy rate in 2026 could surpass 3%, described as the threshold for a balanced market. That would mark the first time in a decade that the level has been reached for a two-bedroom apartment.
RBC economist Rachel Battaglia said the correction reflects a broader cycle.
“Canada’s rental market is experiencing a period of adjustment after years of unsustainable rent growth,” Battaglia wrote. “Though current headwinds will continue pulling vacancies higher in most markets near-term, we don’t see the rental correction extending far out into the future. Importantly, population growth should reaccelerate by 2028 once Canada’s immigration policy has recalibrated, bolstering demand for rental housing.”
