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Rents in Toronto and Vancouver have started rising again for the first time in nearly three years, even as average asking rents across Canada continue to fall. A new report from Rentals.ca and Urbanation highlights a growing divide between Canada’s two largest cities and the rest of the country.
National Rents Still Falling, But Pace Is Slowing
The average asking rent for all residential property types in Canada reached $2,036 in October. That figure marks the 25th consecutive month of declines, down 3.2 per cent compared to October 2025 and 5.4 per cent compared to October 2024. However, October recorded the smallest annual decline since February of this year, suggesting the downward trend is losing momentum.
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Canadian rents peaked at a record high of $2,202 in May 2024. After reaching $2,142 in September 2024, they have fallen steadily across most of the country.
Toronto and Vancouver Rents Begin to Climb
Toronto and Vancouver appear to have already hit their lowest point. Vancouver rents edged up 0.2 per cent compared to October 2025, ending 34 consecutive months of decline. Toronto saw a stronger rebound, with average asking rents for apartments and condos rising 1.6 per cent — the first increase after 36 straight months of decline.
Ottawa also saw a modest gain, with average rents rising 0.3 per cent in October compared to the same month in 2025.
Shaun Hildebrand, president of Urbanation, pointed to shrinking supply as the key driver. “Rents in Canada’s two largest cities are starting to rise for the first time in nearly three years, driven by declining supply, a trend that will continue,” he said. He also warned that “the window for cheaper rents is closing in Toronto and Vancouver.”
Renters Still Find Relief in Other Major Markets
Meanwhile, renters in Calgary, Edmonton and several Greater Toronto Area cities outside Toronto still hold an advantage. Among Canada’s six largest markets, Calgary posted the steepest annual rent decline at 2.4 per cent.
Within the GTA, significant rent drops occurred in Oakville, down 7.7 per cent, followed by Markham at 5.4 per cent, Vaughan at 4.8 per cent and Mississauga at 4.3 per cent.
Condos Lead Declines by Property Type
Condos recorded the sharpest rent drops nationally. Average condo rents fell 5.5 per cent to $2,048, while two-bedroom condos declined even further, dropping 6.1 per cent.
Other secondary housing types, including houses and townhomes, saw rents fall six per cent to $2,016. In contrast, purpose-built rental units proved the most resilient, declining just 2.1 per cent to an average of $2,040.
Overall, the data suggests Canada’s rental market is at a turning point. While most cities still offer lower rents than a year ago, the relief may not last much longer in Toronto and Vancouver.
