While average asking rents in Canada have declined 3.3% year-over-year to $2,129 in May 2025, marking the eighth consecutive month of annual rent drops, this national trend masks a more complex picture across the nation. Several provinces and municipalities are still experiencing notable increases in rental costs, especially in specific segments such as three-bedroom units or smaller urban markets that have attracted growing demand.
Canada’s rental market appears to be cooling after reaching record highs in 2023. However, despite the year-over-year drop, average rents remain 5.7% higher than two years ago and 12.6% above levels from three years ago. Additionally, on a seasonal basis, rents have ticked upward 2% in the past three months. Over the past five years, rents have grown at an average annual pace of 4.1%.
Provinces Seeing Rent Increases
Despite the overall national trend, some provinces are seeing price increases.
Saskatchewan
Saskatchewan stands out as one of the strongest growth regions in May 2025. Average rents for purpose-built and condo apartments rose 3.9% year-over-year to $1,386. This was led by a 7.5% increase in three-bedroom apartment rents, which now average $1,835. Saskatoon recorded a 5.7% increase in apartment rents to $1,442, making it one of the fastest-growing rental markets in the country.
Nova Scotia
Nova Scotia saw rents increase by 2.1% annually, bringing average rents to $2,284. The province continues to face high demand relative to supply, especially in and around Halifax, which remains one of the most expensive rental markets outside of Ontario and B.C.
Manitoba
Though a more modest rise, Manitoba’s average rent rose by 0.1% year-over-year to $1,624, bucking the trend of rent declines in other larger provinces.
Pockets of Rent Increases Within Provinces Seeing Overall Declines
Even within provinces that saw overall decreases in rents, there were still regions that experienced the opposite.
Ontario
While many Ontario cities saw declining rents, several towns registered annual increases. Most notably, Niagara Falls experienced a 7.7% annual rent hike, bringing the average to $2,041. This suggests that some secondary markets in Ontario may be still absorbing demand spillover from pricier urban cores.
Quebec
The province overall saw a rent decline of 1.8%, but Longueuil stood out with a 10.5% annual increase in average apartment rents, now sitting at $1,949. The spike could reflect its growing popularity as an alternative to more expensive areas of Greater Montreal.
British Columbia
Though B.C.’s average rents fell 2.6% year-over-year to $2,462, several towns still posted rent increases. In Abbotsford, average apartment rents rose 4.7% to $1,933. Also notable was the 7.3% increase in three-bedroom apartment rents province-wide, which now average $3,478. Vancouver saw a 14.7% increase in average rents for three-bedroom units, but this is likely due to more high-end listings entering the market rather than rising rents for existing stock.
Alberta
Overall, Alberta experienced a 2.4% decline in average apartment rents. However, Lethbridge bucked this trend with a 7.2% increase, bringing average apartment rents to $1,519. Shared accommodation rents in Edmonton also rose by 2.3% to $768, suggesting a localized affordability squeeze for entry-level renters.
Cities Recording Broad-Based Rent Growth
Among Canada’s six largest metropolitan areas, Ottawa was the only city to record rent increases across all unit types. Two-bedroom rents rose 2.2% to $2,572, while average shared accommodation rents jumped 10% to $1,030, for the fastest increase among Canada’s major markets for this category.
National Downturn Masks Local Hotspots
Despite a nationwide decline in average asking rents, several provinces and municipalities are experiencing localized increases, particularly in smaller or mid-sized cities, and for specific unit types like three-bedroom apartments. The data underscores the growing fragmentation of Canada’s rental market: while high-profile cities such as Toronto, Vancouver, Calgary, and Montreal see sustained rent drops, more affordable or strategically located markets are gaining ground.
For renters, this means continued opportunities in larger urban cores as prices cool. For landlords and investors, growth markets like Saskatoon, Lethbridge, Longueuil, and Niagara Falls, where demand still appears to be outpacing supply, could offer opportunities, although thorough research and due diligence are required, as always.