Kitchener–Cambridge–Waterloo posted a 2.7% decline in new lease rents, Toronto fell 1.0% and Hamilton edged down 0.2%.
“Canada’s rental market is entering a new chapter,” said Peter Altobelli, vice president and general manager at Yardi Canada Ltd.
“We haven’t seen this level of new purpose-built rental supply in a long time, and it’s already shifting market conditions. Reliable, timely data will be essential for housing providers making decisions on pricing, operations and investment.”
Yardi’s data, covering 5,900 properties and more than 517,000 private rental units nationwide, also pointed to rising operating pressures. Annual expenses averaged $8,004 per unit in 2025, with Ontario at $8,822 and Alberta at $8,044, compared with $6,616 in Nova Scotia and $6,727 in Saskatchewan.
Canada Mortgage and Housing Corporation’s 2025 Rental Market Report found vacancy for purpose‑built rentals reached 3.1%, up from 2.2% a year earlier. CMHC pointed to historically strong completions of rental units, combined with weaker demand caused by slower population and economic growth, as key drivers of softer rents.