Slowing Rent Growth Eases Affordability Pressures for Canadian Renter Households: Report

An analysis from Rentals.ca has revealed that affordability pressures are easing for Canadian renter households as rent growth slows across several markets.

Using CMHC’s affordability benchmark of 30 per cent of pre-tax household income, and average asking rent data from the monthly National Rent Report published by Rentals.ca and Urbanation, the analysis found that the share of median renter household income required to afford rent has declined from peak levels reached in 2022 and 2023.

The report noted that while rent levels remain historically elevated and many households continue to feel financially stretched, the gap between renter incomes and asking rents has narrowed in several major cities.

“Affordability can worsen quickly, and take time to recover,” said David Aizikov, manager of data services at Rentals.ca. “While not all markets are moving at the same pace, recent trends in rent growth and income gains suggest conditions are stabilizing relative to the peak.”

In Vancouver, average asking rents peaked at 42.4 per cent of renter household income in June 2023 before declining to 32.3 per cent by October 2025; a 10 percentage-point improvement.

The report noted that over that same period, average asking rents fell by approximately $566 per month, from $3,304 at peak levels to $2,738 in October 2025.

Toronto has also seen a shift. After peaking at 38.1 per cent in November 2022, the share of income required for average asking rents declined to 29.8 per cent by October 2025.

Average rents decreased by approximately $337 per month, from $2,896 to $2,559 over the same period.

In Montreal, average asking rents represented 30.3 per cent of renter income in October 2025, down from 34.2 per cent in October 2023. Average rents declined by roughly $95 per month, from $2,052 at peak levels to $1,957.

In Alberta, affordability conditions remain comparatively strong. By October 2025, average asking rents represented 23.2 per cent of renter income in both Calgary and Edmonton.

In Calgary, average rents have retreated by approximately $320 per month from their September 2023 peak. Edmonton experienced a more modest decline of about $88 per month from its September 2024 peak.