The Canada Mortgage and Housing Corporation (CMHC) released its mid-year rental report on Tuesday (July 8), showing advertised rents are going down in several major Canadian metro areas, including Vancouver.
CMHC credits the growing supply of purpose-built rentals, sluggish job markets and decelerating migration for the turnaround.
Vancouver and Halifax led the way with the largest decreases.
B.C. Housing and Municipal Affairs Minister Ravi Kahlon credited the province's policies with encouraging the increased supply of rental homes and measures cracking down on housing speculations.
"It’s making a difference; rents are going down, vacancy rates are going up as the record levels of rental housing starts we’ve seen in the last four years are now starting to be completed, providing new homes in communities across B.C.," he said in an emailed statement to Black Press Media.
Lower advertised rents were founds in Vancouver, Toronto, Calgary and Halifax in the first quarter of 2025 compared to the year prior. Rents continued to rise in Ottawa, Edmonton and Montreal, though at a slower pace than 2024.
CMHC reports that purpose-built rentals are now taking longer to lease due to increased competition from the secondary rental market, where owners are more likely to lower rents to avoid vacancies. Owners in new builds are responding by offering incentives such as a months free rent, moving allowances and signing bonuses.
Despite average advertised rents decreasing, tenants are not necessarily paying less on average because renters in recent years have been forced to pay more when switching units, driving overall rent growth.
This is especially true in areas with strict rent regulations such as B.C. Because landlords are limited in how much they can raise rents for current tenants, they tend to jack up the price significantly when someone moves out.
While some of the softening of the market is due to increased supply and some due to other forces, CMHC reckons there is still a need for more housing supply to bring the cost-of-living down for renters and meet population growth needs.