Rentals.ca August 2026 National Rent Report

Asking Rents Rise for a Fourth Straight Month as the Market Shows Further Signs of Bottoming Out

Average asking rent for all property types in Canada was $2,037 in July, down 4.0% year-over-year, the 22nd consecutive month of annual decline. However, the pace of decline continued to ease, with July's annual decline being the smallest since February 2026. On a monthly basis, average rent was up 0.2% from June, a fourth consecutive monthly increase since rents reached a 35-month low in March. While rents tend to rise through July as the market reaches its seasonal peak, the increase last month was more muted than in a typical year.

Over the past two years, rents have declined 7.5%, falling to their lowest July level since 2022. Although annual declines are decelerating, and the summer season has shown four consecutive month-over-month increases, year-over-year changes have not yet turned positive in most of the country.

Rent Per Square Foot Holds Steady

Average asking rent per square foot across Canada's six largest markets was $2.54 in July, the same as July 2025 and down 3.6% from July 2024, when asking rents averaged $2.63 per square foot. Compared to two years ago, the average size of an available rental unit shrank 5.5%, from 879 to 831 square feet.

Purpose-Built Rents Remain Most Resilient

On an annual basis, rents for purpose-built rental apartments continued to see the smallest declines of all property types, down 2.6% to an average of $2,041. Condo rents fell 6.3% to $2,063, while other secondary market units, such as houses and townhomes, saw the steepest annual decline, down 7.5% to $2,007.

Condo rents edged up 0.3% from June to July to an average of $2,063.

Within purpose-built apartments, three-bedroom units remained the most resilient unit size, with rents essentially unchanged annually at $2,743, while studio and one-bedroom rents fell 3.9% and 3.0%, respectively. In the condo market, studio rents posted the steepest decline among all unit types, down 9.6% annually to $1,594, with one-bedroom condo rents close behind, down 7.8%.

Two- and Three-Bedroom Rents See Smallest Annual Declines Nationally

Nationally across all property types, three-bedroom rents saw the smallest annual decline of all unit sizes, down 2.1% to $2,515, narrowly ahead of two-bedroom units (-2.7% to $2,159). Units with four or more bedrooms, primarily houses and townhomes, continued to see the steepest declines, down 5.5% to $2,883, while studio (-4.1% to $1,549) and one-bedroom (-3.9% to $1,770) rents also fell faster than the national average.

Ontario Rents Continue Month-Over-Month Climb After Long Slump

Nationwide, the average asking rent for purpose-built and condominium apartments was $2,043 in July, up 0.3% from June. Nova Scotia ($2,377) remained the most expensive province in the country for apartment and condo rents, edging out B.C. ($2,357) for a third straight month. However, the average asking rent in Nova Scotia is skewed higher by a large number of high-priced listings in recently completed buildings undergoing lease-up, as well as a higher proportion of larger units - two-bedroom and larger units made up 52% of the market in Nova Scotia, compared to just 43% in B.C.

Apartment and condo rents rose month-over-month in Ontario (+0.8%), the largest gain among provinces. This was Ontario’s third consecutive month-over-month increase since reaching a 46-month low in April. Smaller increases were seen in B.C. (+0.4%) and Alberta (+0.3%). Saskatchewan (-0.6%) and Manitoba (-0.8%), the two provinces that were leading rent growth over the past year, both slipped on a monthly basis, a possible early sign that as rents become more affordable in other regions, interprovincial flows into these traditionally less expensive markets may be easing.

On an annual basis, the largest apartment and condo rent decreases were seen in Alberta (-4.3%), B.C. (-4.1%) and Ontario (-3.7%), while increases continued in Nova Scotia (+4.5%) and Manitoba (+1.5%).

Three-bedroom rents held roughly steady or rose in most provinces year-over-year: Nova Scotia (+5.9% to $3,025), Manitoba (+0.8% to $2,006) and Quebec (+0.7% to $2,620) all saw increases, while declines continued in B.C. (-5.3%, $3,265), Alberta (-3.8%, $2,052), Saskatchewan (-2.4%, $1,726) and Ontario (-0.9%, $3,056).

Over the longer term, the only provinces to see a decrease in rent over a three-year period were Ontario (-7.9%) and B.C. (-10.1%), while all other provinces saw an increase, with the largest increases in Saskatchewan (+25.7%) and Nova Scotia (+18.0%).

Toronto Rents Surge in July, Now the Best-Performing Major Market

Toronto posted significant rent growth in July, with apartment and condo rents up 1.6% from June to $2,577, the largest monthly gain among Canada's six largest markets, and down just 0.6% year-over-year, the smallest annual decline of the group. This marks a further step towards an emerging turnaround in Toronto’s rental market after more than two years of annual declines, with supply tightening as fewer new condo units come to market and pent-up demand being released as the market becomes more affordable. Toronto listings were down roughly 6% year-over-year, consistent with a tightening rental supply picture.

Calgary (+0.5%) and Edmonton (+0.1%) also posted monthly gains, while Vancouver (-1.4%) and Montreal (-0.4%) saw rents move lower between June and July, and Ottawa was roughly flat (-0.2%).

On an annual basis, Calgary (-4.5%) and Vancouver (-4.5%) saw the largest declines among the six largest markets, followed by Edmonton (-3.6%). Montreal (-1.6%) and Ottawa (-2.4%) were comparatively more resilient, while Toronto (-0.6%) was the clear standout.

A different trend was seen outside Toronto's borders. Rents in neighbouring markets such as Brampton, Mississauga, Oakville and Oshawa continue to post steep annual rent declines of over 7% across all property types. This represents a sharp contrast to Toronto's stabilization, indicating that the city's turnaround has not yet spread to its surrounding markets.

Three-Bedroom Rents Rise in Toronto

While asking rents fell for most unit types across the six largest markets, three-bedroom units increased on an annual basis in Toronto (+3.9% to $3,655). Vancouver's three-bedroom rents fell 3.4% to $3,996, while Calgary, Ottawa and Edmonton also saw declines.

Large Declines Persist in Suburban Markets

Among the top 25 markets outside the six largest, North Vancouver ($3,019) remained the most expensive rental market in the country, followed by North York ($2,563), Richmond ($2,537) and Burnaby ($2,535). Halifax ($2,365) and Dartmouth ($2,376) both continued to rank among the priciest markets in the country, underscoring Nova Scotia's continued strength.

Among the most affordable large markets were Regina ($1,403), Saskatoon ($1,402) and Quebec City ($1,518), with the most affordable rental markets in the country concentrated in Alberta, led by Fort McMurray ($1,313), Medicine Hat ($1,337) and Lloydminster ($1,338).

The largest annual rent increase was seen in Dartmouth (+13.1%), driven by an increase in 2-bedroom rents and a higher proportion of 2-bedroom units in the market compared to July 2025. Notable gains were also seen in Lloydminster (+11.3%), Welland (+6.9%) and North York (+5.1%). Halifax (+4.8%) continued to post one of the strongest annual gains in the country.

Double-digit declines in asking rents continued to be concentrated in markets adjacent to Quebec and Ontario's largest centres: Côte Saint-Luc (-12.9%) saw the largest decline in the country, with significant rent declines also seen in Abbotsford (-12.4%), Markham (-11.9%) and Longueuil (-10.9%).

You can check out the previous rent reports here

The data used in this analysis is based on monthly listings from the Rentals.ca Network of Internet Listings Services (ILS). This data differs from the numbers collected and published by the Canada Mortgage Housing Corporation (CMHC).

The Rentals.ca Network of ILS’s data covers both the primary and secondary rental markets and includes basement apartments, rental apartments, condominium apartments, townhouses, semi-detached houses, and single-detached houses. CMHC’s primary rental data only includes purpose-built rental apartments and rental townhouses. CMHC also collects data on secondary market rentals, but this is reported separately.

CMHC’s rental rates are based on the entire universe of purpose-built rental units (rental stock), regardless of rental tenure. CMHC rental rates are reflective of what the average household spends on rental housing and not the current market rents for vacant units. The data used in this report is based on the asking rates of available (vacant) units only and reflect on-going trends in the market. This covers a smaller sample size but is more representative of the actual market rent a prospective tenant would encounter. The Rentals.ca Network of ILS’s data typically provides much higher rental rates compared to CMHC, as vacant units typically reset to market rates when not subject to rent control.

The average and median rental rates in this report can also skew higher than CMHC’s data for the following reasons: the inclusion of larger more expensive unit types such as single-family homes, townhouse units, and large luxury condominium units; the presence of duplicate or multiple listings at the same property and the survivorship bias where more expensive or over-priced units take longer to lease and remain in the sample longer.

Properties listed for greater than $5,000 per month, and less than $500 per month are removed from the sample. Similarly, short-term rentals, single-room rentals, and furnished suites are removed from the sample when identifiable.