May 16, 2026
Rental prices across Canada are continuing to cool, extending a slowdown that has now lasted more than a year and a half.
A new report from Rentals.ca and Urbanation (1) found average asking rents declined 4.7% year over year in April to $2,027, marking the 19th consecutive annual decline.
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"Rents in Canada are basically back to their level from three years ago," Shaun Hildebrand, president of Urbanation, told CBC News (2), also noting that average asking rents are now roughly $100 lower than a year ago.
BC and Ontario continue to see some of the biggest declines
The largest rent drops remain concentrated in Canada's most expensive markets, according to the Rentals.ca report.
Average asking rents fell 5.9% in British Columbia and 5.2% in Ontario compared with a year ago. Vancouver rents dropped 5.3%, while Toronto rents fell 4.4%.
Several suburban markets surrounding major cities posted even steeper declines, including Richmond, Burnaby, Coquitlam, Markham and Oakville.
But despite the recent slowdown, rents remain far above pre-pandemic levels. National asking rents are still nearly 22% higher than they were in April 2021.
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Rent may be easing — but renters are also getting less space
Part of the reason affordability still feels strained is that rental units themselves are shrinking.
The April report found the average available rental unit measured 827 square feet, down from 865 square feet two years earlier.
A separate analysis released earlier this year by Rentals.ca and Urbanation found the average rental unit size across Canada has fallen from 754 square feet in 2024 to 719 square feet in 2026.
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"While headline rents have moderated, many renters are still feeling the impact of affordability pressures," said Hildebrand in a March press release. "Smaller unit sizes mean renters may be getting less space for their money, particularly in Canada's largest cities."
The differences are especially noticeable in high-cost urban markets. Vancouver renters now pay an average of $4.11 per square foot — the highest rate in Canada and more than double the level seen in Edmonton.
According to the Rentals.ca analysis, much of the recent rental supply in Canada's largest cities has come from condominium developments, where studios and one-bedroom apartments account for a growing share of new inventory.
Demand for centrally located housing also continues to push renters toward smaller spaces, particularly in markets where larger units remain significantly more expensive.
For renters across the country, the recent slowdown isn't likely to change the bigger picture by much, especially when square footage continues to shrink. And that means that in many of Canada's major cities, renters will continue feeling the squeeze – in more ways than one.
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Steven Brennan is a freelance finance writer based in Vancouver, BC. He holds a BA and an MA from Maynooth University, Ireland. His work regularly appears at Canadian Mortgage Trends, Lowest Rates, Loans Canada and other Canadian and US brands, while also working as a ghostwriter for financial influencers.
