The average rental unit asking price in Canada dropped by 4.8% year-over-year to $2,035 in August, marking the most significant decline since March, according to a recent report by Rentals.ca and Urbanation. This decline represents the 23rd consecutive month of year-over-year decreases, with prices down by seven percent compared to 2024. While monthly rents remained relatively stable, experiencing a slight 0.1% decrease from July following four consecutive monthly increases during the spring and early summer.

Urbanation’s president, Shaun Hildebrand, attributes this trend to the escalating trade tensions between Canada and the United States, posing uncertainties for the rental market. Hildebrand cautions that lower employment rates and consumer confidence could dampen demand in the short term, while potential increases in construction costs threaten the supply side.

In August, the average asking rent for purpose-built apartments decreased by 3.3% year-over-year to $2,038, while asking rents for condominium apartments saw a more substantial decline of 7.7% to $2,050.