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As of 2025, Canada’s average rent sits at $2,100 per month, with notable regional differences driven by local demand, supply, and economic trends. Canadian renters are seeing short-term relief as national rent prices decline after several years of sharp increases, but affordability remains a pressing concern, especially in major cities like Toronto and Vancouver.
Canada’s rental market in 2025 is at the center of national attention, as housing affordability continues to be a pressing issue for both tenants and policymakers. With demand for rentals rising due to population growth, immigration, and shifting lifestyle choices, rental prices have surged in many urban centers while remaining more stable in smaller cities. According to recent 2025 data from Rentals.ca, the average asking rent across Canada now exceeds $2,200 per month, marking one of the highest year-over-year increases in recent history.
For renters, this trend means budgeting challenges and tough competition in high-demand markets like Toronto, Vancouver, and Ottawa. For landlords and investors, it highlights strong demand but also growing regulatory scrutiny. This article breaks down the latest rental averages city by city, compares affordability across regions, and examines what’s driving these changes in 2025.
In mid-2025, the national average rent in Canada is $2,100 for all housing types, down 4.4% from last year’s high, marking an 18-month low and signaling a shifting rental landscape. Rents for one-bedroom apartments typically range from $1,520 to $2,200, while two-bedroom units span $1,900 to $3,200, depending on the city and province. This recent decline reflects a nationwide trend toward increased supply and slower population growth, introducing more negotiating power for tenants and modest rental incentives from landlords.
Understanding the latest rental price trends is essential for both tenants and landlords. For renters, keeping track of average rent in Canada provides a benchmark for what to expect when searching for a home, negotiating lease renewals, or budgeting monthly expenses. For landlords and property managers, it helps align rental pricing with market realities while ensuring competitiveness and compliance with provincial rent regulations.
Rising rent costs also have broader economic implications. They influence household disposable income, shape urban migration patterns, and directly impact the affordability crisis that policymakers are trying to address through new housing supply initiatives. In 2025, staying informed about these trends is no longer optional—it’s critical for making smarter financial and housing decisions.
It's clear that secondary markets like Sarnia, Windsor, and Drummondville offer much lower rental costs than the core urban centers.
Toronto’s rental scene continues to be one of Canada's most expensive and fast-paced. The average Toronto apartment rent hit a 30-month low in early 2025, landing at $2,587 for one-bedrooms and $2,690 for two-bedrooms. This represents a 4.7% year-over-year drop. This cooling is a result of a surge in new construction and more listings hitting the market. Consequently, vacancies are up, and landlords are offering incentives like free rent or moving allowances to attract tenants.
Toronto continues to rank as one of the most expensive rental markets in Canada in 2025. According to the latest data from Rentals.ca, the average rent for a one-bedroom apartment in Toronto has surpassed $2,600 per month, while two-bedroom units are averaging well over $3,300. This places Toronto firmly at the top of the affordability debate, with rents consuming far more than the recommended 30% of household income for many residents.
For the average household, Toronto’s rent prices far exceed affordability thresholds. Recent surveys indicate that over 40% of renters in Toronto are in “core housing need”, meaning their housing costs are too high relative to income or the housing itself does not meet adequacy and suitability standards. Young professionals and families are particularly affected, often turning to shared accommodations or moving to suburbs like Mississauga, Brampton, or Scarborough for slightly lower costs.
Renting in Toronto comes with a unique set of advantages and challenges. For many, the city offers unparalleled access to career opportunities, cultural experiences, and lifestyle perks. However, these benefits come at a steep price, making Toronto both a dream and a struggle for renters.
In short, Toronto offers unmatched opportunities and conveniences, but renters pay a premium for the privilege. The city is best suited for those who value proximity and lifestyle, and who have the financial means to absorb higher housing costs.
When comparing major cities, the differences are stark:
Toronto vs. Vancouver Rent Prices: Vancouver consistently edges out Toronto as slightly more expensive for both one- and two-bedroom units. Both cities, however, are significantly above the national average.
Rent Affordability Toronto vs. Montreal: Montreal provides the best affordability among Canada's major cities, with rents almost $1,000 less than Toronto for similar apartments.
The average cost of rent in Canada is finally easing after years of sharp increases. National asking rents have declined by 3-5% year-over-year, and this is happening for a few key reasons:
Here’s how the provinces stack up in terms of average monthly rent for all property types:
2025 is shaping up to be a pivotal year for Canadian renters. Although the average rent in Canada has cooled from its historic peaks and incentives are becoming more common, the differences between regions are still huge. Whether you're considering cosmopolitan Toronto or affordable Drummondville, understanding the local market data and using modern digital tools is key to finding a rental that fits both your budget and your lifestyle.
The average rent in Canada is $2,100 per month for all property types in 2025, but this varies significantly depending on the city and province.
On average, rent in Canada for one-bedroom apartments is between $1,520 and $2,200. For two-bedroom apartments, it ranges from $1,900 to $3,200, based on location.
Toronto’s average rent is about $2,587 for a one-bedroom and $2,690 for a two-bedroom apartment, which is a slight decrease from 2024.
Rental prices in Toronto initially rose due to high demand and limited supply. However, recent increases in new housing supply and economic shifts have caused prices to decline in 2025.
Canada’s average rent in its top cities is comparable to major hubs in the U.S. and Europe. However, many smaller Canadian cities are much more affordable.
Yes, rent prices have decreased in many areas in 2025. This is due to an increase in supply, a slowdown in demand, and general economic uncertainty.
Vancouver is generally more expensive. Average rents there are about $200 higher than in Toronto for similar types of units.
Rent prices are influenced by supply and demand, local economic trends, housing policies, and the strength of rent control regulations.
Drummondville and Sherbrooke in Quebec, along with smaller cities in Ontario and Alberta, consistently offer Canada’s lowest rental prices.
To find affordable apartments, look for listings in secondary cities or outer suburbs, use digital platforms like TenantPay, and keep an eye out for purpose-built rentals or units with vacancy incentives.