Rents in Canada have now fallen for 15 consecutive months. 40% of Canadian Real Estate investment funds are stopping investors from pulling their money out. Layoffs have officially started at the federal level.

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The latest report from Rentals.ca and Urbanation said December 2025 was the 15th consecutive month that average asking rents across the former’s listings network moved lower.

When measured across the full year, average asking rents in Canada declined 3.1% in 2025, which was a larger annual drop than during the COVID-19 pandemic.

However, while rents are down 5.4% compared with two years ago, they still remain 14.1% higher than pre-pandemic levels in December 2019.

Urbanation president Shaun Hildebrand says the demand and supply factors that were pushing rents higher between 2022 and 2024 reversed last year.

“A combination of record-high apartment completions, population growth slowing down, economic uncertainty, and affordability challenges has worked together to push down rents,” Hildebrand said in a press release on Monday.

https://www.canadianmortgagetrends.com/2026/01/average-asking-rents-in-canada-fell-year-over-year-every-month-of-2025-report/

Private real estate funds have trapped nearly $30 billion in investor capital across Canada, blocking withdrawals as property values decline and redemption requests surge beyond what managers can meet without liquidating assets.

The frozen funds represent approximately 40% of the $80 billion invested in Canada’s private real estate sector, according to Bloomberg. Fund managers have imposed restrictions on client exits to prevent forced sales of properties and loans in a weakened market.

https://thedeepdive.ca/canadian-real-estate-funds-lock-22-billion-as-housing-market-slumps/