Rents are falling in Calgary, Toronto, Vancouver and Halifax as supply swells, says CMHC

Rents are starting to fall in several of Canada's largest cities as the number of available rental units grows. According to new data from the Canada Mortgage and Housing Corporation, average advertised rents for two-bedroom apartments in Calgary, Toronto, Vancouver and Halifax all dropped in early 2025. This comes after several years of steep increases that pushed affordability out of reach for many renters. The change suggests that new construction and more supply are finally easing pressure on the rental market.

In Calgary, the average asking rent for a two-bedroom apartment fell by about 3.5 percent compared to the same time last year. Toronto saw a similar drop of roughly 3.7 percent. These declines reflect both a slowdown in demand and a growing number of new rental units hitting the market. Developers have been building more purpose-built rentals in response to the high demand seen over the past few years.

Vancouver, which has some of the most expensive rental prices in the country, saw rents fall by around 4.9 percent. While prices are still high overall, the drop is a sign that tenants now have more options. More supply means landlords are under pressure to price units competitively and offer incentives to attract tenants.

Halifax also experienced a decline, with two-bedroom asking rents down by about 4.2 percent. The city has seen rapid growth in population and rental demand in recent years, but a strong pipeline of new buildings has helped stabilize the market. The slowdown in rent increases gives some relief to renters who have struggled with high costs.

CMHC said the drop in rents is mostly due to new supply becoming available at a faster pace than demand is growing. This shift in balance is helping to correct what had become an overheated rental market. While rents are still higher than they were before the pandemic, the current trend could signal a more sustainable future for both renters and developers.

Experts caution that while this is good news for tenants, the situation could change again if population growth outpaces new housing. For now, though, renters in these cities are finally seeing a break after years of tight supply and rising costs. The hope is that continued construction and stable policies will keep the market balanced in the months ahead.