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Canada Rents Extend Decline in August as Tariffs, Completions and Population Loss Weigh

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Canada's rental market continued to cool in August, with asking rents falling 4.8% on the year, marking the 23rd consecutive monthly decline and the steepest annual drop since March, according to Rentals.ca and Urbanation in a Wednesday note.

August's average asking rent was CA$2,035 a month, which was broadly flat on the month, while the two-year decline reached 7.0%, said Rentals.ca and Urbanation.

Purpose-built rents proved the most resilient, declining 3.3%, compared with steeper drops of 7.7% for condos and 8.3% for secondary-market units, they added.

Montreal and Toronto saw the smallest annual rent declines among Canada's six largest markets, falling 1.1% and 1.4%, respectively. Rents increased month-over-month in four of Canada's six largest markets, led by gains of 1.1% in Ottawa and 1.0% in Vancouver.

The rental market outlook remains uncertain amid trade tensions with the United States, a record wave of apartment completions and population declines, said Rentals.ca and Urbanation.

Although tariff exposure is relatively limited, softer employment and investment could dampen rental demand and add to construction cost pressures.

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