Rental prices across Canada continued to decline in August, with cities more exposed to U.S. tariffs experiencing significantly sharper drops as economic uncertainty begins to affect local rental markets. The average asking rent for all types of rental properties in Canada fell to $2,035 in August 2026, down 4.8 per centfrom the same month last year. It marked the 23rd consecutive month of year-over-year declines and the steepest annual decrease since March 2026. The latest analysis from Rentals.ca and Urbanation found that the decline has been particularly pronounced in communities with greater exposure to U.S. trade. The analysis used the Canadian Chamber of Commerce Business Data Lab’s tariff-exposure index, which considers factors including a region’s export intensity and its dependence on the United States as an export market.
Across the 10 markets identified as most exposed to U.S. tariffs, average asking rents fell about 3 per cent between January 2025 and August 2026, compared with a 0.8 per cent decline in the 10 least-exposed markets. The difference means rents in the most exposed markets have been falling at nearly four times the pace of those in the least-exposed areas. The most tariff-exposed rental markets include Calgary and Lethbridge in Alberta, Trois-Rivières in Quebec, and Windsor, Kitchener-Cambridge-Waterloo, Brantford, Guelph, Hamilton, Thunder Bay and Oshawa in Ontario. Many of these communities have economies closely connected to manufacturing, energy, transportation, forestry or other industries that depend heavily on cross-border trade. Oshawa has recorded one of the largest declines. The auto-manufacturing centre saw average asking rents for all property types fall by more than 10 per cent from January 2025, according to the analysis. The rental market has been weakening nationally even without the additional pressure from tariffs. Rentals.ca and Urbanation said rents have declined by about 7 per cent over the past two years, reaching their lowest August level since 2022. New rental supply and slower population growth have contributed to the broader correction in rental prices.
Trade uncertainty could add another layer of pressure. Analysts say communities heavily dependent on exports to the United States may experience weaker hiring and business investment if tariffs reduce demand or increase operating costs. That can affect rental demand as workers postpone moving, households delay forming new homes and some residents become more cautious about taking on higher housing costs. Urbanation president Shaun Hildebrand said the effects of the trade dispute are still developing and could increasingly influence employment and construction costs. The organization also expects economic uncertainty to affect household formation and rental demand.
At the same time, not every Canadian rental market is experiencing the same trend. Among the country’s six largest markets, Calgary recorded one of the largest annual declines, with apartment and condo asking rents down 4.5 per cent in August to an average of about $1,825. Edmonton rents were down 4.1 per cent year over year to approximately $1,520. Other major markets also recorded declines, although at different rates. Vancouver rents fell 4.1 per cent annually, while Montreal declined 1.1 per cent, Toronto 1.4 per cent and Ottawa 1.6 per cent.
Statistics Canada also reported declines in asking rents for two-bedroom apartments in several major metropolitan areas during the second quarter of 2026. Calgary’s average asking rent for a two-bedroom apartment was $1,890, down 6.4 per cent from a year earlier. Vancouver was down 4.1 per cent, while Montreal fell 5.2 per cent.
However, some Canadian markets are moving in the opposite direction. Statistics Canada reported year-over-year increases in two-bedroom asking rents in Thunder Bay, Sherbrooke, Halifax and Saskatoon during the second quarter.
The difference between asking rents and the rents actually paid by existing tenants is also important. Asking rents reflect prices advertised for units currently available, while paid rents generally reflect existing leases and can change more slowly. Statistics Canada found that asking rents were higher than paid rents in most metropolitan areas where both measures were available in the second quarter. Calgary was one of the exceptions, with an average asking rent of $1,890 compared with an average paid rent of $1,930 for a two-bedroom apartment.
The rental market is therefore being shaped by several factors at the same time: increased housing supply, slower population growth, changing migration patterns, economic uncertainty and the potential effects of U.S. tariffs.
While the national decline provides some relief for people searching for new rental housing, the longer-term impact remains uncertain. Tariffs could reduce rental demand in some communities through weaker employment, while higher construction and material costs could make it more expensive to build new rental housing in the future. For now, the latest figures show a clear split emerging across Canada’s rental market, with prices falling nationally but declining considerably faster in communities most exposed to the ongoing Canada-U.S. trade dispute.