Federal budget figures cite a sharp decline in advertised rents from prior highs in Vancouver and Toronto; measures reflect changing listings, not every tenant's bill.
New budget puts numbers on the rent slowdown
Canada's Budget 2026 cites Rentals.ca asking-rent figures showing that Vancouver rents were approximately 18 per cent below their peak by September 2026, while Toronto was around 14 per cent below its earlier high. The federal document says national asking rents have fallen about eight per cent since a May 2024 peak. Those comparisons are based on advertised rental markets and each city's previous high; they are not a measurement of rent reductions experienced by every tenant in an existing lease.
What an asking-rent trend can and cannot show
Asking rents track what landlords advertise for available units. A shift in the mix of listings, unit sizes, neighbourhoods and incentives can affect the average even without an identical change for comparable homes. Existing renters may be subject to different rules and annual increases. The government attributes easing pressure partly to stronger purpose-built rental construction and slower population growth. Canada's housing agency also warns that construction slowdowns could undermine longer-term affordability gains.
Why caution matters
Lower advertised rents may improve choices for renters who are moving, but affordability also depends on incomes, vacancy rates, deposits, commuting and the quality of available homes. The 18 and 14 per cent changes reflect specific city peaks rather than a forecast for next year. CDN News will distinguish the government's interpretation of Rentals.ca data from independently measured transaction rents and track whether construction continues to meet long-term demand.
Sources & transparency
Government of Canada — Budget 2026, Economic and Fiscal Overview, Chart 33Canada Mortgage and Housing Corporation — Slowing home construction threatens affordability gains, September 2026Original CDN News coverage. Sources are linked for reference.
Request a correction
