📉 1) Averages Don’t Mean What Renters Feel
Some national data reports modest rent declines or cooling trends in 2025–early 2026. For example, vacancy rates have risen and average asking rents have eased in many cities.
However, average figures can be misleading: low-priced units are snapped up quickly, while higher-priced ones linger longer on the market. Averages can look slightly lower even when the apartments people actually want remain pricey.
Also, average rents are still well above pre-pandemic levels despite recent drops, so many renters aren’t feeling any real relief.
🏙️ 2) Supply Isn’t Helping Everyone
New rental construction has increased—and that does put downward pressure, especially in cities like Toronto and Vancouver for some unit types.
But most new units are still comparatively expensive, meaning the supply that’s being built doesn’t help lower-income renters who need cheaper units.
And once developers face high land, financing and construction costs, they’re less likely to build truly affordable housing.
👥 3) Demand Still Strong (Even if Slowing)
Canada’s population is still growing through immigration, and many newcomers rent before buying—keeping demand relatively strong.
Slows in immigration or temporary residents leaving have helped soften some markets, but they haven’t erased overall demand pressures.
Plus, some groups (e.g., students) still concentrate in big cities, pushing rents up in desirable areas even if overall growth slows.
📌 4) “Sticky” High Prices
Rents don’t fall quickly once they get high. Landlords still face high costs (mortgages, taxes, insurance, maintenance), so they’re reluctant to cut rents sharply even as conditions change.
In markets with rent control, landlords may keep existing tenants on controlled rents but charge much higher rents when units turn over, pushing up the average rent paid.
🏡 5) Regional Differences and Local Tight Spots
National trends can obscure local conditions. Some smaller or secondary cities still see rent increases even as big cities cool.
For example, rent growth in places like Nova Scotia or parts of Ontario bucked the broader softening trend.
📊 In Summary — Why Rent Isn’t Crashing
Even though rents are cooling or falling modestly in some places, they’re not collapsing because:*
High prices are sticky — rents don’t rapidly reset downward.
Supply increases aren’t delivering enough affordable units.
Demand remains strong overall, especially among renters who can’t afford to move far.
Average rent numbers can mask what people actually pay.
Local market differences mean some areas still have upward pressure.
If you’d like, I can break this down further by city (e.g., Toronto vs Vancouver vs Calgary) or help explain how rent control rules affect these trends.