Canada’s housing agency says the pace of rent growth ticked lower this year as vacancies continued rising, while increased rental supply also contributed to softer market conditions.

Canada Mortgage and Housing Corp. says the average rent for a two-bedroom purpose-built apartment, which it uses as its representative sample, grew 5.1 per cent to $1,550, compared with a 5.4 per cent increase in 2024.

The figures represent the growth in rent costs for both existing and new tenants, so prices differ from reports that focus only on asking rents for new tenants.

The vacancy rate for purpose-built rental apartments sat at 3.1 per cent in October when CMHC conducted the annual survey, up from 2.2 per cent at the same point last year and 2023’s record low of 1.5 per cent.

CMHC says that as vacancies rose, landlords lowered rents on new leases to stay competitive, with the average two-bedroom turnover unit rent declining in Vancouver, Calgary, Toronto and Halifax

Meanwhile, the average rent for a two-bedroom rental condo was $2,305, up 4.8 per cent year-over-year, with the vacancy rate for such units at 1.3 per cent.

This report by The Canadian Press was first published Dec. 11, 2025.

Sammy Hudes, The Canadian Press