North Vancouver and Vancouver continue to have the highest average rents in Canada, despite another year-over-year drop in July. Photo by Nick Procaylo /PNG

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A two-year trend of dropping rents continues across Canada, most notably in Vancouver, but the west coast city and its North Shore neighbour remain the most expensive in the country.

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In the latest national rent report from Rentals.ca, Canadian rents dropped four per cent year-over-year in Canada to an average of $2,037 in July. It was the 22nd consecutive month in which rents declined, but the smallest drop since February.

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North Vancouver had the highest average rent in Canada at $3,039, with Vancouver coming in second at $2,686.

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By contrast, rents have barely declined in Canada’s biggest city, Toronto, which is third-most expensive at $2,580. Rents were down just under one per cent year-over-year, and rose by 1.5 per cent from June. It appears rents in Toronto and across Ontario are stabilizing after a prolonged price slump, according to Rentals.ca.

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The figures refer to asking price for available units, not rents paid by existing tenants.

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B.C. is also the most expensive rental market, with a provincial average of $2,384 despite a 4.5 per cent drop year-over-year. Atlantic Canada was second at $2,298. All five other provinces had average rents below the national average of $2,037.

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Some other B.C. cities with rents in the top end: Burnaby at No. 5 overall ($2,543, down 3.6 per cent year-over-year), Coquitlam No. 6 ($2,526, down 3.4 per cent), Victoria No. 14 ($2,307, unchanged year-over-year), Langley No. 16 ($2,239, down 3.2 per cent), and New Westminster No. 20 ($2,190, down 2.6 per cent).

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B.C.’s second-most populous city, Surrey, is just outside the top 20 most expensive rental markets at $2,167, down 5.7 per cent over a year ago.

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One market just outside Metro Vancouver, the city of Abbotsford, had a whopping 12.4 per cent annual drop in rents — the second-biggest drop in the country.

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Vancouver remains the most expensive rental market among Canada’s biggest cities despite declines in recent months. Photo by Rentals.ca

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The general trend  — after dropping to post-pandemic lows in March 2026 — it looks like rents have bottomed out. July was the fourth straight month with a small uptick in average rents.

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Overall, rents have gone down 7.5 per cent in the past two years. While annual declines are decelerating, most markets remain down year-over-year.

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The report notes that rents for two- and three-bedroom units are either flat or rising in most markets, suggesting the rental crunch is hitting larger families hardest. In Toronto, three-bedrooms were up nearly four per cent annually. By contrast, studio units in condos have experienced a nearly 10-per-cent annual drop.

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Purpose-built rentals have been the most stable of all housing types, dropping 2.6 per cent to an average of $2,041. Rental condos were down 6.3 per cent to $2,063, while rentals in houses and townhomes had the steepest decline, dropping 7.5 per cent to $2,007.