Canada Rental Market — July 2026
The national average asking rent was $2,037 in July 2026, down 4.0% year over year — the 22nd consecutive month of annual decline, but the smallest of those declines since February 2026.
The more useful signal is monthly. Rents rose 0.2% from June, a fourth consecutive monthly increase as the market reached its seasonal peak. Rentals.ca titles this release “Asking Rents Rise for a Fourth Straight Month as the Market Shows Further Signs of Bottoming Out”. Over two years rents are still down 7.5%, and July’s level is the lowest for that month since 2022 — so the decline has decelerated rather than reversed.
Property type separates the market. Purpose-built rentals are the most resilient, down 2.6% to $2,041, while condominium rents fell 6.3% to $2,063 — condo investors are competing for tenants in a way purpose-built operators are not. Toronto was the standout among the six largest markets: rents rose 1.5% from June and were down just 0.8% on the year, the best annual performance of the group.
Unit size matters more than it used to. Three-bedroom rents fell just 2.1% nationally to $2,515 and two-bedroom 2.7% to $2,159, while within purpose-built apartments three-bedroom rents were essentially flat at $2,743 against studio and one-bedroom declines of 3.9% and 3.0%. Average rent per square foot across the six largest markets held at $2.54, the same as July 2025, while the average unit size fell 3.0% to 831 square feet — renters are paying the same rate for less space.
Average Asking Rents — July 2026
All figures are average asking rents for apartments and condos combined. Year-over-year changes reflect the annual trend in listed rental prices.
| City | Avg. Rent | YoY Change | MoM Trend | vs. National |
|---|---|---|---|---|
| Vancouver | $2,677 | ▼ 4.5% | Declining | +$640 |
| Toronto | $2,577 | ▼ 0.6% | ▲ 1.6% (strongest) | +$540 |
| Montréal | $1,940 | ▼ 1.6% | Declining | −$97 |
| Calgary | $1,828 | ▼ 4.5% | Monthly gains | −$209 |
| Canada (all) | $2,037 | ▼ 4.0% | — | — |
Source: Rentals.ca August 2026 National Rent Report (July 2026 data), liv.rent July 2026 Metro Vancouver Rent Report.
Renting vs. Owning in Canada — July 2026
With average asking rents 4% below last year and buying costs still elevated by higher prices and interest rates, renting continues to be the lower-cost short-term option in most Canadian markets. However, the rent-own calculus varies significantly by city.
| City | Avg. 2-Bed Rent | Avg. Home Price | Est. Monthly Own | Rent Premium/Discount |
|---|---|---|---|---|
| Vancouver | ~$3,000 | $1,088,800 (benchmark) | ~$5,400 | Renting saves ~$2,400/mo |
| Toronto | $2,600 | $1,003,956 (avg.) | ~$4,900 | Renting saves ~$2,300/mo |
| Calgary | ~$2,000 | $569,200 (benchmark) | ~$2,800 | Renting saves ~$800/mo |
| Montréal | ~$2,100 | $650,000 (median SFH) | ~$3,200 | Renting saves ~$1,100/mo |
Est. monthly ownership cost assumes 20% down, 25yr amortization at 4.29%, plus property tax ($400–$600/mo) and maintenance ($200/mo). Not a substitute for a full mortgage analysis.
What rent can you afford?
What's Driving Canadian Rents
22 straight months of annual decline: After record rent increases in 2022–2023, the pendulum has swung. New rental supply that was approved during the boom is now coming online, and elevated ownership costs have reduced investor demand for condo rentals in some markets.
Toronto's resilience: Toronto's 0.6% annual decline and 1.6% monthly gain suggest the city's rental market may be closer to a floor than others. Dense transit-oriented neighbourhoods and continued population growth are absorbing new supply faster than in suburban or peripheral markets.
Vancouver still Canada's most expensive: At $2,677/month average — $640 above the national average — Metro Vancouver remains the most expensive rental market in Canada. The 6.5% YoY decline in 1-bedroom rents is notable, but the absolute level remains out of reach for many renters on average incomes.
Calgary's affordability window: At $1,828/month, Calgary is the most affordable of the four largest markets — and seeing monthly gains, suggesting the bottom may be in. If Calgary's strong employment and in-migration story continues, rents could firm up faster than national trends suggest.