CALGARY — Average rents in Canada fell 4.8% to $2,035 in August compared to August 2025, the 23rd consecutive month of declines, according to a report from Rentals.ca and Urbanation, which added tariff-exposed cities had the largest drops in rents.
“Canada's trade conflict with the United States is widening a split in the national rental market, with communities most exposed to US tariffs recording steeper rent declines than their counterparts, said the report.
“Prices are now 7% below 2024 levels and at their lowest point since 2022.”
Gathering data from the Canadian Chamber of Commerce, the report identified ten cities in the country that are most vulnerable to the tariffs through their auto, steel, aluminum, energy, and lumber sectors.
Those cities are Calgary, Windsor, Kitchener-Cambridge-Waterloo, Brantford, Guelph, Hamilton, Trois-Rivières, Lethbridge, Thunder Bay, and Oshawa.
Oshawa had the deepest rent decline in Canada, at 10.8% year-over-year.
Windsor, even with its significant automotive economy, had a much more modest drop of 2.4%, which the report attributes to a smaller rental supply base.
The ten least-exposed cities, Vancouver, St. John’s, Saskatoon, Halifax, Victoria, Regina, Winnipeg, Nanaimo, Kamloops, and Greater Sudbury, had steadier conditions.
"While there has already been an observable correlation between rents and tariff exposure, with rents in the 10 most tariff-exposed CMAs falling faster than the 10 least-exposed, as of August 2026, local market effects have remained the dominant factor," said the report.
The trade war is also curtailing home construction economics, with Statistics Canada's Building Construction Price Index showing fabricated metal costs rose 2.1% quarter-over-quarter, while structural steel climbed 1.8% over the same period and 7.2% since the first quarter of 2025, a direct result of the US 50%. tariff on Canadian steel, which Canada matched in full with retaliatory levies.
Toronto and Vancouver are in the midst of a double exposure problem, with a decline in condo construction in both cities because of a reliance on steel and rebar being priced much higher, says the report.
"With little to no condo construction to fall back on, Toronto and Vancouver are doubly exposed to potential price shocks on the supply side," it says.
The tariffs are also taking a toll on employment.
Statistics Canada data shows Ontario lost 27,200 manufacturing jobs, with primary metals employment in the province down 18.4% in a single year. Nationally, 40,600 manufacturing positions were shed in 2025 due to tariff-related disruption.
Uncertainty in the housing sector and economy is keeping renters in affected markets to stay in place rather than moving, leading landlords and individuals with rental properties to offer incentives, such as free rent for an initial number of moths, and/or reduced rents on new leases than on renewals.
