Market update May 2026: Rent prices fell (again)

PayProp Insights Canada’s monthly rental market health check reveals continued slowing of rent growth as economic headwinds persist.

• Rentals.ca reports the national average asking rent has now fallen for 18 straight months to $2,008.

• The average asking rent in Ontario grew 0.4% month over month, from $2,229 in February to $2,238 in March.

• “Canada’s rental market is experiencing a period of adjustment after years of unsustainable rent growth," says RBC economist, Rachel Battaglia.

• Battaglia attributes this shift to slowing population growth, ongoing affordability pressures, and broader economic uncertainty – factors that keep coming up in our monthly rent check in PayProp Insights.

• However, she adds that, “...we don’t see the rental correction extending far out into the future. Population growth should reaccelerate by 2028 once Canada’s immigration policy has recalibrated, bolstering demand for rental housing.”

• Meanwhile, the Canadian Real Estate Association (CREA) reports an average national home price of $673,084 in March – up 1.4% from February but down 0.8% year over year.

• Ontario continues to have among the highest average home prices in the country (second only to British Columbia) at $811,868 – up 1.2% from last month’s average.

• According to CREA, home sales volumes were virtually unchanged (-0.1%) from February to March.

• The Canada Mortgage and Housing Corporation reports the six-month trend in housing starts showed a 2.9% decline to 248,378 units in March.