Market update Oct 2025: Supply glut keeps pressure on rent

The rental market continues its slow-moving funk since our last health check. Asking rents are slightly higher than last month but the market is still soft enough to pose challenges for landlords and property managers.

• Rentals.ca reports the national average asking rent rose 0.8% from July to $2,137 in August, ending a 10-month streak of month-over-month declines.

• Ontario, the second-highest-priced province, recorded a 1.9% rent increase to an average of $2,369.

• Among Canada’s 25 most expensive cities, 15 are in Ontario, including 10 in the Greater Toronto Area.

• President of Urbanation Shaun Hildebrand believes reduced immigration, cheaper mortgages for landlords, and an oversupply of high-priced housing are keeping rents down, and that these trends are expected to continue.

• Meanwhile, the Canadian Real Estate Association (CREA) reports an average national home price of $664,078 in August – down 1.3% from July and up 1.8% year over year.

• Ontario continues to have among the highest average home prices in the country (second only to British Columbia) at $804,985 – down 2.1% from last month’s average.

• According to CREA, home sales were up 1.1% from June to July.

• Ontario and PEI are the only two balanced markets based on sales-to-new-listings ratios. Seven provinces remain seller’s markets.

• The Canada Mortgage and Housing Corporation reports the six-month trend in housing starts increased 1.6% from July to 267,259 in August.

More rental market headlines

Gen Z and Millennials increasingly rely on family for expenses – Wealth Professional

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

Ontario’s job losses could impact rent payments – PayProp blog