National asking rent rises for a fourth straight month as annual declines ease
Canada's national average asking rent rose to $2,037 in July, up 0.2% from June. That's the fourth straight monthly gain since rents hit a 35-month low in March, according to the Rentals.ca and Urbanation August 2026 National Rent Report.
The July reading marked the 22nd straight month of year-over-year decline. However, the annual decline narrowed to 4.0%, its smallest margin since February 2026, offering the earliest indication that a two-year correction may be losing steam.
Over the past two years, average asking rents have fallen 7.5%, retreating to their lowest July level since 2022.
The monthly recovery, which began after asking rents reached their lowest point in nearly three years in March, has stoked cautious optimism, though analysts are careful to separate seasonal momentum from a genuine market turning point.
"Canada's rental market is showing signs of stabilizing, but not yet recovering," said Shaun Hildebrand, president of Urbanation, which co-produces the monthly report with Rentals.ca.
"While rents have risen for four straight months, this is typical seasonal momentum heading into the back-to-school period, with annual declines persisting across most of the country."
Toronto leads as suburban markets widen their gap
Among Canada's six largest cities, Toronto posted the most striking performance. Apartment and condo rents rose 1.6% from June to $2,577 — a year-over-year decline of just 0.6%, the smallest annual drop in the group and a marked improvement from the national-level declines that characterised Canada's rental market through most of June 2026.
Toronto listings fell roughly 6% year-over-year, consistent with a tightening supply picture as fewer new condo completions entered the market.
Hildebrand called the Toronto rental market "worth watching as a potential leading indicator."
Three-bedroom Toronto units were the standout nationally, rising 3.9% annually to $3,655, the only major city where that segment posted a gain.
The recovery has not extended to surrounding communities, however. Brampton, Mississauga, Oakville, and Oshawa each posted annual rent declines exceeding 7%, underscoring how localised Toronto's stabilisation remains.
Purpose-built holds firm while condos and secondary units lag
Across property types, purpose-built rental apartments remained the most resilient nationally, falling 2.6% year-over-year to an average of $2,041. Three-bedroom purpose-built units were essentially flat annually at $2,743.
Condo rents fell 6.3% to $2,063, with studio condos recording the steepest annual drop of all unit types at 9.6% to $1,594, a segment under sustained pressure from excess supply and weakening demand tied to reduced temporary resident inflows.
Houses and townhomes saw the largest annual retreat, down 7.5% to $2,007.
At the provincial level, Nova Scotia remained the country's most expensive market for apartment and condo rents at $2,377, up 4.5% year-over-year, though that figure is skewed by a high concentration of newly completed, larger-format units still in lease-up.
Ontario posted a 0.8% monthly gain, its third consecutive increase, after rental affordability pressures persisted well into 2026 despite months of falling asking prices across the country.
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