Rents easing across most major markets but many tenants not feeling relief: CMHC

Canada’s housing agency says advertised rents in some major cities are easing due to factors such as increased supply and slower immigration, but renters are still not feeling relief.

Canada's housing agency says advertised rents in major cities are easing due to factors such as increased supply and slower immigration, but renters are still not feeling relief relative to their income levels. Kyle Jerry, right, helps De-Ren Jhou carry a mattress into an apartment building on Quebec's unofficial moving day in Montreal, Tuesday, July 1, 2025. THE CANADIAN PRESS/Graham Hughes

Canada’s housing agency says advertised rents in some major cities are easing due to factors such as increased supply and slower immigration, but renters are still not feeling relief.

In its mid-year rental market update, Canada Mortgage and Housing Corp. says average asking rents for a two-bedroom purpose-built apartment were down year-over-year in markets such as Vancouver, Toronto, Calgary and Halifax.

It says landlords are reporting that vacant units are taking longer to lease, especially for new purpose-built rental units in Toronto, Vancouver and Calgary, where they face competition from well-supplied secondary rentals such as condominium units and single-family homes.

The agency says rents for occupied units are continuing to rise but at a slower pace than a year ago.

Despite downward pressure on rent prices, the report says affordability has still gotten worse over time as rent-to-income ratios have steadily risen since 2020, especially in regions like Vancouver and Toronto where turnover rents are driving increases.

Meanwhile, vacancy rates are expected to rise in most major cities this year amid slower population growth and sluggish job markets.

This report by The Canadian Press was first published July 8, 2025.

Sammy Hudes, The Canadian Press

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