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Executive Summary
- Average asking rent in Canada fell to $2,030 in February, down 2.8% year-over-year to a 33-month low.
- Rents have declined on an annual basis for the 17th consecutive month, as well as falling by 1.3% on a month-over-month basis, the largest decrease in February since 2020. However, rents rose month-over-month in the key markets of Vancouver, Ottawa, Calgary, Edmonton and Montreal.
- Rental affordability improved significantly, with the rent-to-income ratio falling to 29%, its lowest level in over six years and below the industry benchmark of 30%.
- Purpose-built rents remained the most stable, with a 1.9% decline to an average of $2,030, while three-bedroom rents for all property types grew 0.6% to $2,486.
- Average rents for all unit types continued to fall across the most populous provinces, down 4.9% in B.C., 4.7% in Ontario, 4.6% in Alberta, and 3.1% in Quebec. Manitoba was the most populous province to see an increase in average asking rents (+1.3%).
- Secondary markets adjacent to Canada’s largest rental markets saw steep declines in apartment rents, with double-digit declines seen in Oakville (-14.6%), New Westminster (-12.8%), Surrey (-11.3%), Vaughan (-11.0%) and Kanata (-10.1%).
- Rent per square foot remained flat at $2.53, the same as February 2025, and down from $2.64 in February 2024. The average unit size for listings decreased to 826 square feet, down from 864 square feet in February 2025 and 881 square feet in February 2024.
Rents in Canada Decline for 17th Consecutive Month
Average asking rents for all property types in Canada fell to $2,030 in February, a 33-month low and the 17th month in a row of year-over-year decline. While the rental market tends to slow in the winter months, the seasonal decline in rents was larger than usual this year. On a month-over-month basis, rents fell by 1.3%, the largest monthly decline seen since November 2025 and the largest decrease in the month of February since 2020.
Over the past two years, rents have fallen by 7.4% from February 2024, but remain 2.3% higher than in February 2023.
Rent Per Square Foot Remains Flat
Average asking rent per square foot remained flat year-over-year at $2.53, but declined 4.2% from February of 2024, when asking rents averaged $2.64 per square foot. In the past two years, the average size of rental units has fallen 6.3% to a low of 826 sf.
Affordability Shows Continued Improvement for Renter Households
As rents continue to soften and average weekly wages show moderate gains, the affordability of rent as a percentage of renter household income has continued to improve. The average rent in February accounted for 29% of average renter household income, down from 31% a year ago and 34% two years ago, and below the standard 30% affordability benchmark.
While asking rents remain above pre-pandemic levels, wage gains have outpaced asking rent increases over a six-year period, resulting in an overall improvement in affordability for Canadian renters.
Based on the 30% affordability benchmark, the household income required to afford the average rent for all unit types in Canada fell to $81,213, down from $83,513 in February 2025 and $87,728 in February 2024.
Condo Rents See Continued Decline
On an annual basis, condos once again saw the steepest decrease in asking rents, falling 5.1% year-over-year to an average of $2,082. Other secondary market units fell 4.5% annually to an average of $2,009, while purpose-built rental apartments remained the most resilient, down 1.9% from last year to an average of $2,030.
Continuing the trend in January, one-bedroom rents decreased the most compared to a year ago, down 3.5% to an average of $1,781. Three-bedroom units remained the only unit type to register rent growth, with rents rising 0.6% annually to an average of $2,486.
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