Market update Sept 2025: Low immigration pushes rent down

Reduced immigration and an oversupply of high-priced housing have pushed rents down for the 10^th straight month.

“Rent decreases at the national level have been mild so far, with the biggest declines mainly seen in the largest and most expensive cities," says Shaun Hildebrand, President of Urbanation.

At the lower end of the market, Canada Mortgage and Housing Corporation (CMHC) confirms international student caps have hit Ontario, especially Toronto, quite hard, dampening demand.

• According to Rentals.ca, the average national asking rent fell $4 from June to $2,121 in July.

• Rents have declined for 10 months in a row including in July – but are still up 2% compared to two years ago, and 11% over three years ago.

• Ontario, the second-highest-priced province, recorded a 3% rent decline to an average of $2,325.

• Outside of Toronto, Oakville and Markham had the highest average apartment rents in the province ($2,688 and $2,510).

• Meanwhile, the Canadian Real Estate Association (CREA) reports an average national home price of $672,784 in July – down 2.7% from June and up 0.8% year over year.

• Ontario continues to have among the highest average home prices in the country (second only to British Columbia) at $822,356 – down 3.5% from last month’s average.

• According to CREA, home sales were up 3.8% from June to July.

• After months as Canada’s only buyer’s market, Ontario has shifted to a balanced market, joining two others based on sales-to-new-listings ratios. Six provinces remain seller’s markets.

• “Canada’s rental market is experiencing a prolonged softening phase,” said David Aizikov, Manager of Data Services at Rentals.ca. “With the seasonal peak now behind us, we expect continued downward pressure on rents heading into the fall.”

• The CMHC reports the six-month trend in housing starts increased 3.7% from June to 263,088 in July.

More rental market headlines

This GTA company is reimagining renos with multiplex conversions – Storeys

What will renters pay more for? Apartments that offer human connections – RENX

Toronto apartment buildings to get colour-coded ratings – PayProp blog