The average asking price for a rental unit in August was $2,035, down 4.8 per cent compared with a year ago.

A monthly report from Rentals.ca and Urbanation, released Wednesday, said that marks the steepest year-over-year drop since March.

Average asking rents have now fallen year-over-year for 23 consecutive months, with prices down seven per cent compared with 2024. For August, the average cost being sought by landlords was at its lowest level since 2022, the report said.

Rents were essentially flat on a monthly basis, down 0.1 per cent from July after four consecutive monthly increases through the spring and early summer.

“The seasonal tailwind that lifted rents through the spring and summer has faded,” said Urbanation president Shaun Hildebrand in a news release.

Hildebrand said the trade war escalation between Canada and the United States is also “emerging as a new uncertainty for the rental market.”

“Demand could be impacted in the near term through lower employment and consumer confidence, while supply is being threatened through potentially higher construction costs,” he said.

“For now, the direct exposure appears localized to specific industries and regions, but the broader economic uncertainty is something to watch out for.”

The report added that Canada’s rental market faces other ongoing challenges, such as the record-high volume of apartment completions underway and a declining population. However, those are being somewhat offset by pent-up demand entering the market amid improved affordability.

Asking rents for purpose-built apartments fell 3.3 per cent year-over-year to an average of $2,038 last month, while asking rents for condominium apartments decreased 7.7 per cent to $2,050.

Secondary market units such as houses and townhouses saw the steepest annual decline, down 8.3 per cent to $2,014.

The report said rent declines were concentrated in Canada’s largest provinces, led by a 4.6 per cent year-over-year drop in British Columbia to $2,353. Alberta’s average asking rent decreased 4.3 per cent to $1,670 in August, while the average price for apartments and condos in Ontario was down 3.5 per cent to $2,248.

Prices rose 3.1 per cent to $2,356 in Nova Scotia, which has been Canada’s most expensive province for apartment and condo renters for four straight months. Manitoba’s average asking rent also ticked up 0.2 per cent to $1,617.

This report by The Canadian Press was first published Sept. 9, 2026.

Sammy Hudes, The Canadian Press