Canada’s Rents Fall for 23rd Straight Month, With Tariff-Hit Cities Seeing Steepest Declines
Average asking rents in Canada have declined for 23 consecutive months, with August recording the steepest drop since March 2026. Analysis shows that cities most exposed to U.S. tariffs are experiencing rent decreases nearly four times faster than those least affected, a trend linked to economic uncertainty following collapsed trade negotiations.
Average asking rents across Canada have been falling for almost two years, marking a significant shift in the national housing market. According to recent data, August represented the 23rd consecutive month of decline and recorded the steepest drop since March 2026.
The average asking rent for all property types in Canada stood at $2,035 in August. This figure represents a 4.8 per cent decrease compared to the same period in 2025. While the downward trend is visible nationally, the impact is unevenly distributed based on regional exposure to international trade dynamics.
Analysis by Rentals.Ca and Urbanation reveals that rents are plummeting much faster in cities and towns most exposed to trade with the United States. Since January 2025, rents in the 10 most tariff-exposed cities have fallen nearly four times faster than in the least-exposed ones. Oshawa, one of the identified markets, saw average asking rents for all property types decline by 10.8 per cent during this period.
The report identifies Calgary, Lethbridge, Trois-Rivieres, Windsor, Kitchener-Cambridge-Waterloo, Brantford, Guelph, Hamilton, Thunder Bay, and Oshawa as the rental markets most exposed to tariffs. In contrast, the 10 cities least exposed to these trade pressures include Vancouver, St. John's, Saskatoon, Halifax, Victoria, Regina, Winnipeg, Nanaimo, Kamloops, and Greater Sudbury.
This divergence in rental trends is attributed to economic uncertainty and trade tensions following the collapse of negotiations between Canada and the United States last month. Ottawa walked away from talks due to U.S. demands, which included restrictions on new Canadian trade deals. Prime Minister Mark Carney stated that the U.S. insisted on limiting Canada’s ability to enter into new agreements with other countries.
Since the breakdown in discussions, U.S. President Donald Trump has escalated economic pressure by imposing multiple rounds of tariffs and import restrictions. These developments have created distinct impacts on rental markets, with areas heavily dependent on exports to the U.S. facing sharper declines in housing costs.