Are Rents Actually Falling in Canada in 2026? A Data Breakdown

According to Rentals.ca / Urbanation (April 2026): the national average asking rent was $2,027, down 4.7% YoY — the 19th straight month of annual declines, now about $100 below a year ago, 7.4% below 2024, and back to roughly where it sat three years ago. By type: purpose-built apartments $2,027 (−3.7%), condo apartments $2,087 (−5.6%) — condos are falling fastest.

According to Rentals.ca / Urbanation (April 2026): Toronto rents (all types) fell to their lowest level since May 2022 — a 46-month low — after 26 consecutive months of YoY declines; the one-bedroom average is $2,195, down 6.3% YoY (the largest 1-bed drop among the six biggest markets).

According to TRREB (Q1 2026): condo one-bedrooms leased at $2,246 (−4.1%), two-bedrooms $2,939 (−3.2%), three-bedrooms $3,757 (−2.7%), with lease volume up about 11% YoY. According to CMHC (2026): Toronto’s purpose-built vacancy rose to 3.0%, the highest since 2021.

“Falling asking rents” apply to new leases. Sitting tenants — especially in rent-controlled units — pay in-place rents that are still catching up to market. That’s why Statistics Canada’s CPI rent index rose 3.6% YoY in April 2026 and is up 30.8% since April 2021. “Rents are falling” and “my rent went up again” are not contradictory.

1. Record supply. According to CMHC (2026), rental units under construction ran at nearly twice the 10-year average, Toronto rental starts hit their second-highest level ever, and a wave of new condos poured into the rental pool.

2. Immigration cuts, slower population growth. According to the Government of Canada’s 2025–2027 Immigration Levels Plan, permanent-resident targets were cut from 500K to 395K (2025), 380K (2026) and 365K (2027), with temporary residents down about 43% — projecting roughly −0.2% population change in both 2025 and 2026. The demand side is literally shrinking.

3. Softer demand, more tenant leverage. Fewer international students, a weaker labour market, and abundant new inventory have shifted leverage back to renters.

Renters who are moving: the best leverage since 2021–22 — negotiate and expect incentives. But you only capture the lower asking rent by switching units; staying in a rent-controlled unit may already be cheaper than market.

Existing tenants: you likely feel little of this — in-place rents are still climbing and a 4.7% drop in asking rents doesn’t lower your guideline increase.

Landlords: higher vacancy (Toronto purpose-built 3.0%), softer pricing power, longer lease-up — recently completed condo investors feel it most.

Investors: a tenant-favouring market near-term that persists as more supply completes; the medium-term counterweight is a possible supply thinning if immigration normalizes (population projected +0.8% in 2027). The structural affordability gap hasn’t closed.

Q: Are rents actually going down in Canada in 2026?

Asking rents for new listings are. The national average was $2,027 in April 2026, down 4.7% year-over-year and falling for 19 straight months (Rentals.ca / Urbanation, May 7, 2026). But rents existing tenants pay are still rising — Statistics Canada’s CPI rent index was up 3.6% YoY in April 2026.

Q: How much have Toronto / GTA rents fallen?

Toronto asking rents hit a 46-month low (lowest since May 2022) after 26 straight months of YoY declines; the one-bedroom average is $2,195, down 6.3% YoY (Rentals.ca / Urbanation, April 2026). TRREB Q1 2026 condo leases: 1-bed $2,246 (−4.1%), 2-bed $2,939 (−3.2%).

Q: Why are rents falling now?

A record wave of new rental and condo supply (construction near double the 10-year average) collided with sharply slower population growth from federal immigration cuts (−0.2% population in both 2025 and 2026), pushing Toronto’s purpose-built vacancy to 3.0%, the highest since 2021 (CMHC, 2026).

Q: If asking rents are down, why is my rent still going up?

Falling asking rents apply to new leases. Sitting tenants — especially in rent-controlled units — pay in-place rents still catching up to market, which is why StatCan’s rent CPI rose 3.6% YoY in April 2026 and is up 30.8% since 2021.