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"The downward trend for rents in Canada accelerated during the first month of 2025," said Urbanation president Shaun Hildebrand in a press release.

"Heightened downside risks for the economy, combined with declining international population inflows and multi-decade highs for apartment completions, suggest rents will continue to weaken in the months ahead. This will result in improved affordability for renters."

Despite the declines though, the report said average rents in Canada were still 5.2 per cent higher than two years earlier and 16.4 per cent higher than three years ago. That translates to a $104 monthly increase since January 2023 and $296 increase since January 2022.

Much of the latest decline was concentrated in the secondary rental market, where asking rents for condominium apartments fell 6.5 per cent to an average of $2,219, while rents for houses and townhomes declined 8.9 per cent to $2,144.

Average asking rents for purpose-built rentals decreased 1.7 per cent to $2,070.

Ontario recorded the steepest rent declines among all provinces, with apartment rents falling 5.2 per cent to an average of $2,329 in January. 

Meanwhile, the country's most expensive rental market of B.C. saw a 2.6 per cent decrease to $2,463. Nova Scotia's rents ticked 0.7 per cent lower to an average of $2,195.

All other regions saw average asking rent prices for apartments increase, led by Manitoba at 3.1 per cent to $1,599. Average rents in Saskatchewan and Alberta rose 2.7 and 2.4 per cent, respectively, to $1,311 and $1,731.

Apartment rents in Quebec were effectively flat with a 0.4 increase to $1,966.

Measured by city, Vancouver and Toronto remained the most expensive cities to rent in Canada. The average asking price for an apartment rental in Vancouver was $2,896 per month, down 5.2 per cent annually, while Toronto's average rents fell to a 30-month low of $2,615 — down 7.6 per cent.

Calgary also saw a significant decrease, with average apartment asking rents down six per cent to $1,925.

This report by ´ºÉ«Ö±²¥was first published Feb. 6, 2025.