Canada’s most expensive housing markets saw their first increase in average asking rents in nearly three years, while rents across Canada continue to fall, new report shows.
The average asking rent for all residential property types in Canada was $2,036 in October, a report from Rentals.ca and Urbanation showed on Thursday.
While this marked the 25th consecutive month of declines, falling 3.2 per cent compared to October 2025 and 5.4 per cent compared to October 2024, the pace of the decline is slowing.
October saw the smallest annual decline in rents since February this year, the report said.
“The window for cheaper rents is closing in Toronto and Vancouver,” said Shaun Hildebrand, president of Urbanation.
Average asking rents in Canada reached a record high of $2,202 in May 2024. After hitting $2,142 in September 2024, rents have steadily declined across the country.
In Toronto and Vancouver, however, rents appeared to have hit bottom already.
Get weekly money news
Get expert insights, Q&A on markets, housing, inflation, and personal finance information delivered to you every Saturday.
“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,” Hildebrand said.
Vancouver saw rents rise marginally (0.2 per cent) compared to October 2025, the first increase after 34 consecutive months of decline, while Toronto saw a larger increase of 1.6 per cent in average asking rent for apartments and condos, the first increase after 36 consecutive months of decline.
Rents were also up in the nation’s capital, with Ottawa seeing average rents rise 0.3 per cent in October compared to the same period in 2025.
While the window for low rents seems to be closing in the two biggest cities, renters still have an advantage in big cities like Calgary, Edmonton and major GTA markets outside of Toronto, Hildebrand said.
Among the six largest markets in Canada, Calgary posted the largest annual decline in rents (2.4 per cent).
The Greater Toronto Area saw major rent declines in Oakville (7.7 per cent), Markham (5.4 per cent), Vaughan (4.8 per cent) and Mississauga (4.3 per cent).
Condos saw the sharpest decline in rents, with rents falling to $2,048 for all condo types nationally, a drop of 5.5 per cent compared to October 2025. Two-bedroom condos saw an even sharper decline, with a 6.1 per cent drop.
Other secondary housing units, such as houses and townhomes, saw rents fall by six per cent to $2,016.
Purpose-built rents remained the most resilient of all property types, down 2.1 per cent to $2,040.
© 2026 Global News, a division of Corus Entertainment Inc.