Weak economic backdrop could keep rent prices soft this summer: report

For rent signs are seen on buildings in Montreal on Thursday, June 26, 2025. THE CANADIAN PRESS/Christinne Muschi

TORONTO — A new report says Canada could be poised for a slower-than-usual summer rental market as average asking rents for May were down approximately $100 from a year earlier.

The latest monthly analysis from Rentals.ca and Urbanation finds the average asking rent for May was down 4.7 per cent year-over-year to $2,029, marking the 20th consecutive annual decline.

Prices ticked up 0.1 per cent on a month-over-month basis from April, which the report says is well-below the average seasonal increase during the previous five years of 1.3 per cent.

Urbanation president Shaun Hildebrand says the Canadian rental market is heading into the peak summer season under a weak economic backdrop, a decreasing population and record apartment completions, which are all factors keeping rent increases “softer than what is typical for this time of year.”

Asking rents for purpose-built apartments fell 3.4 per cent year-over-year to an average of $2,031 last month, while asking rents for condominium apartments fell 6.8 per cent to $2,076.

At the provincial level, annual apartment rent declines were concentrated in Canada’s largest provinces, led by British Columbia at 5.4 per cent, Ontario at five per cent and Alberta at 4.7 per cent.

This report by The Canadian Press was first published June 8, 2026.

Sammy Hudes, The Canadian Press