Rent growth may be cooling across Canada, but for many renters, it likely doesn’t feel that way.
A new analysis from Rentals.ca and Urbanation suggests one reason why: even as rents stabilize, the amount of space renters are getting has been shrinking. Since 2024, the average unit size has fallen to 719 square feet from 754 square feet, a decline of roughly 4.6%.
Average asking rent in Canada fell to $2,030 in February, down 2.8% from a year ago and marking a 33-month low. That’s the 17th consecutive annual decline, with rents also falling 1.3% from January, the largest February drop since 2020.
But the trend isn’t uniform, and the national numbers mask some divergence. Rents edged higher month over month in several major markets, including Vancouver, Ottawa, Calgary, Edmonton and Montreal. And even with the recent pullback, rents are still roughly 14% higher than they were before the pandemic in early 2020.
“While headline rents have moderated, many renters are still feeling the impact of affordability pressures,” said Urbanation president Shaun Hildebrand. “Smaller unit sizes mean renters may be getting less space for their money, particularly in Canada’s largest cities.”
Smaller units driving the shift in rental size
Average rental unit sizes have been trending lower, but the report attributes that decline primarily to changes in the mix of supply rather than smaller layouts.
Much of the recent housing supply in Canada’s largest cities has come from condominium developments, where studios and one-bedroom units represent a growing share of new inventory.
As the report notes, “much of this change is driven by a growing share of smaller units in the market, rather than significant reductions in the size of individual unit types.” The average size of one-bedroom units, for example, has declined by only about 1.4% over the past two years.
While individual unit types have remained relatively stable in size, a higher proportion of smaller units is pulling down the overall average across the market.
The report also points to underlying economics shaping that mix. Smaller units allow developers to increase unit counts and manage costs, while development charges can vary significantly by unit size. In Toronto, for example, charges for a two-bedroom unit are roughly 44% higher than for a one-bedroom or bachelor unit.
Average rental unit size across Canada
Price per square foot highlights regional differences
A look at rent per square foot shows how those differences play out across markets. Vancouver remains the most expensive at $4.11 per square foot, followed by Toronto at $3.52, while Ottawa also exceeds $3.
By comparison, Edmonton averages $1.99 per square foot and offers larger units, with Calgary also providing more space at lower relative cost.
The report notes that demand for centrally located housing continues to support more compact living arrangements, as renters prioritize proximity to employment, transit and amenities.
Rents per square foot across Canada
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Last modified: March 31, 2026