Oct 6, 2026
If you’ve signed a lease recently — or you’re about to — the sticker shock is real. Asking rents, the prices advertised for vacant units, have surged nationally by more than 20% since 2021, according to new research from the Bank of Canada.
There is some relief in the latest numbers. Rents on new listings have cooled in many cities, and in a few they’ve even dropped. But anyone who moves still pays today’s market rate — which is often hundreds of dollars a month more than the tenants who stay put.
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Here’s what drove the jump, who’s paying the most and how to decide your next move.
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Why did asking rents jump so fast?
The analysis found that asking rents surged between 2021 and 2024 mostly because demand for rental housing grew faster than supply. Strong population growth — particularly among newcomers, a demographic more likely to rent — added renter households faster than new units came on the market.
Interest rates piled on to the problem. Landlords with mortgages typically pass higher borrowing costs on to tenants, and pricier mortgages kept more would-be buyers renting. Rising rates were a key driver in 2022 and 2023.
The picture has shifted since mid-2024. The number of newcomers to Canada has dropped sharply, and interest rates have come down from their peak in 2023 and early 2024.
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Are rents finally coming down?
In many places, yes, rents are decreasing — but from a much higher starting point. The average asking rent for a two-bedroom apartment across Canada’s major urban areas was $2,130 a month in the second quarter of 2026, down 3.6% from a year earlier, according to Statistics Canada.
At the same time, over the past year asking rents fell 6.4% in Calgary, 5.2% in Montreal and 4.1% in Vancouver. Asking rents increased in other cities, climbing 6.5% in Thunder Bay, while Halifax and Saskatoon each rose more than 5%.
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Vancouver is still the priciest market, where a two-bedroom lists for an average of $3,030 a month. Toronto follows at $2,650, with Victoria not far behind at $2,640 and Halifax at $2,400.
StatCan describes these figures as experimental. They’re drawn from rental listing platforms and don’t take unit quality into account, so treat them as a guide rather than an exact price tag.
Why does moving cost so much more than staying?
Rent controls in many provinces limit annual increases for existing tenants, but landlords can increase rents more substantially when a new tenant moves in. That’s why people entering the rental market, who are primarily young Canadians and newcomers, pay close to asking rents and face the greatest affordability pressures.
The affordability gap shows up in StatCan’s numbers. Asking rents for two-bedroom apartments were higher than paid rents in almost every metro area where both are tracked. In Vancouver, the average paid rent was $2,470, which is about $560 a month or $6,720 a year, below asking.
In Toronto, paid rent averaged $2,160, roughly $490 a month, or $5,880 a year, below asking.
The exceptions were Calgary, Regina and Edmonton, where asking rents were either at or below what existing tenants pay. StatCan notes that part of the gap also reflects differences between vacant and occupied units, such as building age and location.
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Turnover is also a part of the equation. Only about 13% of rental units nationally get a new tenant each year — ranging from 9% in Toronto to 29% in Edmonton. In low-turnover cities, many tenants pay rents that were set years ago, so the gap between staying and moving can stay wide for a long time.
How much do you need to earn to rent today?
From CMHC’s vantage point, housing is considered affordable when it costs less than 30% of a household’s before-tax income. Using that benchmark and StatCan’s latest asking rents, here’s roughly what a household would need to earn to afford a typical two-bedroom (rent only, before utilities):
- Major-city average ($2,130): about $85,200
- Halifax ($2,400): about $96,000
- Toronto ($2,650): about $106,000
- Vancouver ($3,030): about $121,200
For a single earner, newcomer or a young family, those thresholds help explain why so many renters still feel priced out — even as rents ease.
Considering a move?
Whether you have to move or want to, there are a few simple things you can do to make the most informed decision before you decide on your next step.
Compare before you move
Check current listings against what you’re currently paying. If you’re in a rent-controlled unit, leaving could cost you thousands of dollars a year.
Negotiate in softer markets
Where asking rents are falling, such as Calgary, Montreal and Vancouver, landlords may have less leverage, which in turn means, you have some power to negotiate. Ask about incentives like a free month, including parking or a longer lease at a locked-in rate.
Know your province’s rules
Rules around rent-increase limits vary by province, and some units may be exempt. Check with your provincial landlord and tenant board before you sign.
Run the 30% test
If a new place pushes your rent well above 30% of gross income, consider a roommate, a smaller unit or a different neighbourhood.
So, are Canadians priced out of the rental market? Not across the board, no, but the squeeze lands hardest on whoever signs the next lease. Asking rents climbed more than 20% after 2021 as population growth and higher interest rates collided with tight supply. They may have eased in many cities since, but they haven’t returned to where they were. Tenants who don’t move are often shielded by provincial rent controls, while young Canadians, newcomers and anyone forced to move pay the going rate. If a move is your near future, compare what you pay now with local listings, weigh the gap and use any softening in your city to negotiate.
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Leslie Kennedy served as an editor at Thomson Reuters and for Star Media Group, followed by a number of years as a writer and editor and content manager in marketing communications, before returning to her editorial roots. She is a graduate of Humber College’s post-graduate journalism program and has been a professional writer and editor ever since.
