CREA Senior Economist Shaun Cathcart noted that “with three years of pent-up demand still out there and more normal interest rates finally here, further upward momentum is expected into 2026.”

Key Housing Metrics for September 2025

• National home sales were down 1.7% MoM but up 5.2% YoY
• New listings edged down 0.8% MoM
• Sales-to-new listings ratio (SNLR) held at 50.7%, indicating balanced market conditions
• The national average home sale price was $676,154, up 0.7% YoY
• MLS Home Price Index was down 0.1% MoM and down 3.4% YoY
• Months of inventory stayed at 4.4, below the long-term average of 5 months

CREA Chair Valérie Paquin stated that “while there are more buyers in the market now than at almost any other point in the last four years, sales activity is still below average and well below the long-term trend.” She added that continued gradual improvement is expected as confidence builds through late 2025 and into 2026.

Regional Market Performance Across Canada

• Toronto: Home prices continued to ease, with the MLS Home Price Index down 0.5% MoM and 5.5% YoY. Prices have fallen roughly 25% since early 2022, improving affordability. Home resales have climbed 22% since spring, reflecting renewed buyer activity.
• Vancouver: Home resales slipped 6% MoM but remained 1% above last year. Inventory reached decade highs, pushing the benchmark home price down 3.2% YoY to $1.14 million. Despite lower prices, affordability remains a significant barrier.
• Calgary: Market conditions are shifting toward balance. Home sales dipped slightly while inventory hit a 7-year high, reducing buyer urgency. Benchmark prices were down 4% YoY, and additional supply from new construction is expected to keep prices soft.
• Montréal: Conditions remained tight, sustaining moderate price growth. Single-family homes led gains, with prices up 7.2% YoY compared to 3.6% for condos.
• Winnipeg and Regina: Both markets recorded small monthly increases, contributing to national stability despite uneven trends across these prairie provinces.

National Real Estate Market Dynamics and Outlook

CREA expects 473,093 home sales nationwide in 2025, a slight 1.1% decline from 2024. The average price is projected to edge down 1.4% to $676,705, driven mainly by softer conditions in Ontario and British Columbia. Gains between 4% and 8% are expected across most other provinces. In 2026, activity is forecast to rebound by 7.7% to 509,479 transactions, while the national average price is projected to rise 3.2% to $698,622, marking the highest sales level since 2021 and reinforcing steady market recovery.

According to RBC Economics, the fall market began on a cautious note, shaped by affordability challenges and uneven regional trends. Expanding supply in Ontario, BC, and Alberta has improved buyer choice and negotiating power, while tight markets such as Montréal continue to see slow but steady price increases.

• Buyers: Growing supply and stable prices are improving conditions for entry, especially as borrowing costs ease following Bank of Canada rate cuts.
• Sellers: Competition is increasing in higher-priced provinces, making pricing strategy and timing more essential to attract buyers.
• Renewers and Refinancers: Falling fixed rates and stable valuations are creating better opportunities for homeowners looking to refinance or renew at lower costs.

The Canadian housing market continues to move toward a more balanced and stable phase, with 2026 shaping up to be a year of gradual recovery as lower interest rates, improved affordability, and steady demand support long-term stability.

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National Average Asking Rent Down 3.2% YoY

According to the recent data from the National Rental Report for October 2025, national rent prices continued to ease through September. “Asking rents in Canada decreased by 3.2% in September from last year’s record high to an average of $2,123, marking the twelfth consecutive month of year-over-year declines.” The report noted that this trend follows 38 months of rent increases between 2021 and 2024 and coincides with record apartment completions, fewer non-permanent residents, and a softer job market.

YoY Decline Continues Nationally, as Short-Term Trend Stabilizes

National rent prices have shown consistent downward movement over the past year. Rents decreased by 3.2% compared to the previous year, with the national average now at $2,123. They were also down 1.2% compared to 2 years ago, marking the first 2-year decline since January 2022. Month to month, the 3-month moving average remained stable, suggesting prices may be levelling off after a prolonged decline.

Secondary Rental Markets Leading the Declines by Property Type Segmentation

Across property types, rent prices were down in all categories. Purpose-built apartment rents decreased by 2.1% compared to last year, averaging $2,093. Condo rents were down 3.0% to an average of $2,226, while house and townhouse rents declined by 5.5% to $2,178.

By unit type, rent prices fell across the board. 1-bedroom units decreased by 4.1% to $1,836, 2-bedroom units declined by 2.6% to $2,220, studio apartments dropped by 2.4% to $1,616, and 3-bedroom units recorded the smallest decline at 1.3% to $2,561.

Larger Apartment Units Demonstrated Greater Stability Compared to Smaller Ones

Larger apartments demonstrated relative resilience compared to smaller ones. 3-bedroom apartment rents increased by 0.9% to $2,755 for purpose-built rentals and by 2.4% to $2,923 for condos. In contrast, studio condo rents fell sharply, decreasing by 8.7% to $1,708.

Provincial Rent Prices Showed the Steepest Annual Declines in BC and Alberta

Across provinces, rent prices generally trended downward in September, with BC and Alberta leading the declines.

• BC: average rent $2,430, decreased by 5.5% compared to last year
• Alberta: average rent $1,734, decreased by 5.5% compared to last year
• Ontario: average rent $2,316, decreased by 2.7% compared to last year
• Nova Scotia: average rent $2,293, decreased by 2.2% compared to last year
• Quebec: average rent $1,957, decreased by 0.5% compared to last year
• Saskatchewan: average rent $1,374, decreased by 0.3% compared to last year
• Manitoba: average rent $1,680, increased by 2.6% compared to last year

Over a 2-year period, rent prices declined in BC by 8.5%, Ontario by 6.8%, and Quebec by 0.7%. In contrast, the Prairie provinces saw the fastest 3-year rent growth, with Manitoba up 27.1%, Saskatchewan up 26.5%, and Alberta up 20.5%.

Rent Prices in Canada’s 6 Largest Urban Centres Decreased in September

All 6 of Canada’s largest cities recorded annual rent declines for apartments in September. Vancouver saw the sharpest decrease, while Toronto recorded the smallest in over a year.

• Vancouver: average rent $2,776, decreased by 8.2% compared to last year
• Toronto: average rent $2,592, decreased by 2.9% compared to last year
• Calgary: average rent $1,897, decreased by 7.4% compared to last year
• Ottawa: average rent $2,190, decreased by 1.3% compared to last year
• Montréal: average rent $1,981, decreased by 0.5% compared to last year; 3-bedroom units rose 3.2% to $2,810
• Edmonton: average rent $1,573, decreased by 2.3% compared to last year; 3-bedroom units rose 4.9% to $2,035

Metro Vancouver Remains Canada’s Most Expensive Market While Alberta Holds the Lowest Rent Prices

Rent prices remained highest in Metro Vancouver and surrounding markets, while Alberta continued to offer Canada’s lowest costs for renters.

• Most expensive cities: North Vancouver ($2,985), Richmond ($2,809), Burnaby ($2,611), Coquitlam ($2,559), Oakville ($2,701), Westmount ($2,548)
• Most affordable cities: Lloydminster ($1,235), Medicine Hat ($1,314), Fort McMurray ($1,349), Regina ($1,402), Saskatoon ($1,437), Quebec City ($1,628), Sarnia ($1,679), Winnipeg ($1,691)

Kingston and Vaudreuil-Dorion Recorded the Fastest Rent Growth Among Mid-Sized Cities

Kingston continued to lead the nation in rent price increases, followed by gains in select smaller cities.

• Fastest growth: Kingston up 19.9%, Vaudreuil-Dorion and St. Albert up 8.5%, Abbotsford up 7.0%, Windsor up 5.5%
• Sharpest declines: Coquitlam down 15.0%, Surrey down 11.7%, New Westminster down 10.1%, East York down 13.0%

BC and Alberta Experienced the Most Significant Declines in Shared Accommodation Rent Prices

Shared accommodation rents were lower across all major provinces, returning to levels last seen 2 years ago. Combined average rent across 4 provinces: $943, decreased by 6.6% compared to last year.

• BC: decreased by 7.4% to $1,120
• Alberta: decreased by 7.1% to $841
• Ontario: decreased by 6.9% to $1,026
• Quebec: decreased by 3.7% to $870

Major cities: Vancouver decreased by 14.7% to $1,268, Calgary decreased by 8.4% to $850, Montréal decreased by 3.2% to $901, Toronto unchanged at $1,233, Edmonton up by 0.5% to $794, Ottawa up by 16.2% to $1,108

Sustained rent moderation, as seen through shelter price inflation, should help the Bank of Canada maintain a gradual rate-cutting path through 2026, supporting improved mortgage affordability across Canada.

Canada Market Rents Summary

The average rent in Canada was $2,109 for the month of September 2025, which decreased by 2.3% on a year-over-year basis.

The average rent for a bachelor apartment in Canada was $1,618 for the month of September 2025, which decreased by 2.3% on a year-over-year basis.

The average rent for a 1-bedroom apartment in Canada was $1,877 for the month of September 2025, which decreased by 3.9% on a year-over-year basis.

The average rent for a 2-bedroom apartment in Canada was $2,291 for the month of September 2025, which decreased by 2.4% on a year-over-year basis.

The average rent for a 3-bedroom apartment in Canada was $1,877 for the month of September 2025, which decreased by 2.4% on a year-over-year basis.

How Does Renting Compare with Homeownership in Today’s Housing Market?

Each $100,000 in mortgage balance costs an average of $520.07 per month on nesto’s lowest fixed 5-year rate at and $514.13 per month on nesto’s lowest adjustable 5-year rate at . For each $100,000 in mortgage balance, a 0.25% change in Canada’s policy rate impacts the monthly payment by $13.51. Rates used for calculation are those offered on insured purchases with less than a 20% downpayment on a 25-year amortization. Canada’s policy rate is 2.50%, and nesto’s prime rate is 4.70%.

Rental Price Changes by City

Rental Price Changes by Province

Rental Price Growth by Housing Type

Frequently Asked Questions on Canadian Housing Market Outlook for 2025

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