Canadian Rents Decline for 16th Consecutive Month: Report
Canadian rental prices continue to decline, marking a notable trend in the housing market. According to a recent report, January 2026 saw a two percent drop in average rents nationwide, bringing the average rent to $2,057. This represents the 16th consecutive month of year-over-year decreases.
Overview of Rent Decrease in Canada
The report, produced by Rentals.ca and Urbanation, highlights a significant milestone: rents in January 2026 reached their lowest point in 31 months. Furthermore, average rents have decreased by 6.3 percent compared to two years prior. However, they remain 12.9 percent higher than pre-COVID-19 levels.
Improved Affordability in the Market
As rental prices decline, the affordability ratio for consumers has also improved. The average rent-to-income ratio fell slightly below 30 percent for the first time in six years, indicating a positive shift in housing costs relative to income. Shaun Hildebrand, president of Urbanation, noted that an increase in supply has played a critical role in reducing rental costs.
Impact of Unit Sizes and Regional Variations
The report points out changing unit sizes as a factor in rent decreases. The average size of rental listings decreased from 885 square feet last year to 857 square feet in January. This trend reflects shifts in the preferences and availability of rental units across the country.
Provincial Rent Declines
Rent prices have not fallen uniformly across Canada. The decline in average apartment rents varied by province:
- British Columbia: Decrease of 4.7%
- Alberta: Decrease of 4.3%
- Ontario: Decrease of 3.3%
- Quebec: Decrease of 2.6%
Overall, these trends indicate a significant shift in the Canadian rental market, with longer-term implications for affordability and housing dynamics.
