For Canadian renters, it may feel like the years since the COVID-19 pandemic have brought one hit after another.

After a 4.6 per cent increase in the average asking price of a rental unit in 2021, monthly payments surged 12.1 per cent year-over-year in 2022, according to data from Rentals.ca and Urbanation.

Then in 2023, asking rents increased by an average of 8.6 per cent.

However, experts say the rental market across the country seems poised for a cool-down in 2025 as more supply opens up and some look to buy their first home.

Whether various regions experience outright declines in rents or simply decelerate in their growth, the rapid increases of recent years are unlikely to continue in 2025.

91裸聊视频淭his comes after record-breaking growth in 2022 and 2023. Rental prices are so expensive, like, they91裸聊视频檝e blown up,91裸聊视频� said Rentals.ca spokesperson Giacomo Ladas.

But data from his platform shows a turnaround is already underway. Average asking rents fell 3.2 per cent nationally to $2,109 in December year-over-year, marking a 17-month low.

91裸聊视频淲hat we91裸聊视频檙e seeing is tons of movement. Incentives are now coming back into units.91裸聊视频�

October marked the first month in three years in which the asking rent for units across Canada fell, RBC economist Rachel Battaglia said in a report, led by declines in the two most expensive cities: Toronto and Vancouver.

91裸聊视频淲e91裸聊视频檙e at a little bit of a turning point,91裸聊视频� Battaglia said in an interview.

Experts point to a number of factors at play. On the demand side, economic and labour challenges have meant fewer people are seeking new rentals.

91裸聊视频淧eople have been trying to stay put,91裸聊视频� said Tim Hill, a real estate agent with Re/Max All Points Realty in Vancouver.

91裸聊视频淚f they didn91裸聊视频檛 have to, a lot of people just simply weren91裸聊视频檛 moving. If they had a good monthly rent, they were staying there for as long as they possibly could.91裸聊视频�

Subdued demand is also likely to come from slowed population growthafter the federal government reduced immigration targets.

91裸聊视频淣ewcomers do make up a disproportionately large share of renters,91裸聊视频� Battaglia said.

91裸聊视频淣ot only that, but we have a weakening labour market too, which could be bringing more households to bundle or delay that move out into rental housing 91裸聊视频� I suspect there are fewer younger individuals moving out of their parents91裸聊视频� house into rentals, or maybe they91裸聊视频檙e rooming with others.91裸聊视频�

TD economist Rishi Sondhi predicts purpose-built rent growth will ease to a range of three to four per cent this year.

In a forecast earlier this month, he said the effect of falling interest rates would also be felt by renters looking for a new lease 91裸聊视频� lower borrowing costs will likely lure more people to buy a home, leading to less competition for rentals.

91裸聊视频淚nterest rates are also likely to push lower in 2025, helping renters make the transition to home ownership,91裸聊视频� Sondhi said in the report.

91裸聊视频淲hat91裸聊视频檚 more, falling interest rates should lower costs for landlords, reducing the pressure to pass through these costs to rents.91裸聊视频�

Forecasts say the rental market will also look more attractive in 2025 thanks to new supply opening up.

Last year marked Canada91裸聊视频檚 largest gain of purpose-built rental supply in more than three decades, said Canada Mortgage and Housing Corp. in a recent report, and Sondhi added 91裸聊视频渁nother flood91裸聊视频� is slated to reach completion this year.

The federal housing agency said the average rent for a two-bedroom purpose-built apartment grew 5.4 per cent to $1,447 in 2024, compared with an eight per cent increase in 2023. (CMHC91裸聊视频檚 report examines the cost of actual rent payments, rather than listings of asking prices, which are often higher.)

Meanwhile, Canada91裸聊视频檚 supply of purpose-built rental apartments grew 4.1 per cent year-over-year.

91裸聊视频淚t91裸聊视频檚 definitely a little bit of a breath of fresh air. That said, the rental markets across Canada are still very, very tight,91裸聊视频� said CMHC deputy chief economist Tania Bourassa-Ochoa in an interview.

She noted there is a higher vacancy rate for newer, more expensive units, while that of more affordable properties is 91裸聊视频渟till extremely low.91裸聊视频�

91裸聊视频淲hen we91裸聊视频檙e thinking about what does that mean for renters? Ultimately, affordability challenges are definitely still there, and in many cases, affordability has even worsened.91裸聊视频�

Ladas said most major cities are still undersupplied when it comes to rental stock, meaning it will be difficult to sustain any relief that 2025 brings for tenants.

91裸聊视频淭he first half of 2025, at least, I think we can expect 91裸聊视频� the most affordable markets will continue to see higher demand and the most expensive markets will continue to see lower demand, and rents are going to keep coming down,91裸聊视频� he said.

91裸聊视频淏ut I think that these rental prices coming down should be looked at more as a temporary thing.91裸聊视频�

He noted that new high-rises take years to build, and many that opened up last year were the result of projects that began when borrowing costs plummetedduring the pandemic.

High interest rates over the past two years 91裸聊视频� prior to the Bank of Canada91裸聊视频檚 ongoing cutting cycle 91裸聊视频� may put a damper on that construction momentum.

91裸聊视频淲e91裸聊视频檙e going to see long-term undersupply of units continue,91裸聊视频� Ladas said.

CMHC said earlier this month the total number of housing starts in 2024 rose two per cent compared with 2023, helped by historically high rental construction levels.

The country91裸聊视频檚 six largest census metropolitan areas saw a combined drop of three per cent in 2024 as starts in Vancouver, Toronto, and Ottawa moved lower, while Calgary, Edmonton, and Montreal saw an increase 91裸聊视频� driven in part by high rental starts.

Battaglia said policymakers should be viewing the coming period of slower population growth as a 91裸聊视频済olden opportunity for Canada to catch up.91裸聊视频�

91裸聊视频淭his is an opportunity to really speed up the construction of new housing,91裸聊视频� she said.

91裸聊视频淲e91裸聊视频檝e come really far for construction of new rentals but let91裸聊视频檚 keep it going and increase the pace.91裸聊视频�