Now that rent in Canada has dropped for the fifth straight month, renters have something to celebrate. Sure, rental prices are still higher than they were a couple of years go, but this trend lends a glimmer of hope that a slightly more affordable living could be a reality for some Canadian renters.
According to a monthly report by Rentals.ca and Urbanation, the average rent across the country decreased by 4.8 per cent in February. For those keeping track, that’s the largest drop since April 2021. That means average national rents are now only 5.2 per cent higher than they were two years ago, and 16.9 per cent higher than pre-pandemic.
So why the trending shift? According to experts, there are a few key events that are resulting in more affordable units and homes.
An Economic Shift
Shaun Hildebrand, the president of Urbanation, says rental decreases are due to several factors, like the market slowdown, a record number of apartment completions, a deceleration in population growth, and overall economic challenges from 2024.
“Current trends suggest rents may experience further decreases in 2025, which so far have been focused on secondary market units,” he said in a release.
That makes now a great time to rent, particularly from independent owners. But Hildebrand cautions that these decreases are probably temporary and won’t drop much more in the coming months. He says there still aren’t enough rental units in the country; and as construction slows down, rents are predicted to go back up.
Related: These Are the Hottest Canadian Cities for Renters
The Most Expensive City to Rent
According to the report, the average national rent is now $2,088. However, the price you’ll pay for a unit depends on what kind of unit you’re looking for and where you want to live. As of March 2025, the most expensive city to rent in is Vancouver, where a one-bedroom averages $2,518 per month and a two-bedroom goes for n whopping average of $3,442.
Burnaby, BC, Toronto, Oakville, ON, and Mississauga, ON rounded out the top five most expensive cities to rent, with prices all above the national average. In fact, the top nine most expensive cities, which also include Ontario’s Etobicoke, North York and Burlington as well as Victoria, BC, all exceed the national average rent.
Guelph, ON ranked No. 10 at $2,084 for a one-bedroom, while Brampton, ON. placed 11th at $2,076 for a one-bedroom.
Outside of Ontario and BC, Halifax is the most expensive city to rent in, with a one-bedroom going for an average of $2,033 and a two-bedroom priced at $2,504. Montreal, meanwhile, averaged $1,744 for a one-bedroom and $2,255 for a two-bedroom. Calgary was $1,583 and $1,919 respectively, Winnipeg averaged $1,426 and $1,744, and Saskatoon was $1,262 and $1,473.
Related: Where Are Canadian Renters Getting the Most Space for Their Money?
Property Type Matters, Too
Where you live makes a big difference in the rent you’ll pay, but so does the type of property you rent. According to the report, condos went for the highest national average, followed by apartments and houses/townhomes.
The biggest change in rent came with those seeking houses or townhomes, with a -10.4 per cent change year-over-year. That’s slightly more than the drop in condo prices, which was -7.6 per cent year-over-year. Apartments, meanwhile, stayed pretty consistent with only a -1.9 per cent drop.
The bottom line? Houses are becoming more affordable for renters, particularly as owners seek secondary incomes and families opt to rent rather than buy.
Not All Provincial Rent Averages Dropped
Although Canadian rents dropped overall in the last year, not all provinces saw the decrease. Ontario saw the biggest drop at four per cent, while BC and Quebec dropped by one per cent each.
Atlantic Canada saw the biggest jump though, with average rents going up by six per cent. Saskatchewan also increased, by five per cent year-over-year, while Manitoba jumped three per cent. Alberta also increased by one per cent for a combined, national rent drop of -2.9 per cent year-over-year.
Related: Top Renter-Friendly Cities That May Surprise You
A Nation of Renters
According to the last census in 2021, roughly five million Canadian households rent their homes. That translates to roughly 33 per cent of Canadians who rent. Those numbers may be outdated though and won’t be confirmed until the next official census, which is scheduled to take place next year.
In the meantime, some studies suggest that as many as 28 out of 50 major cities in Canada have more than the 33 per cent national average of renters. Surprisingly, it’s Montreal that boasts the most renters, with 63 per cent of households.
