Average asking rents fall 4.8% in August as trade war adds fresh uncertainty: report

In August, the average asking price for rental units dropped 4.8% compared to the previous year, according to a report by Rentals.ca and Urbanation. This marks the most significant year-over-year decrease since March, with prices falling for 23 consecutive months, and a 7% decline compared to 2024. Despite a month-to-month increase from July, rents remain essentially unchanged on a monthly basis.

Shaun Hildebrand, president of Urbanation, attributes this trend to growing uncertainty caused by the Canada-U.S. trade war. The trade tensions are creating potential demand slowdown due to reduced employment and consumer confidence, as well as supply constraints from possible higher construction costs. The average asking rent for purpose-built apartments decreased 3.3% year-over-year to $2,038, while for condominium apartments, it fell 7.7% to $2,050.