The Rental Reset

🏭 Tariff Towns Feel the Rent Drop

Source: Rentals.ca

The 411: Asking rents are falling faster in Canada’s most tariff-exposed cities, as weaker job markets appear to be adding pressure to already-soft rental conditions.

• Average asking rents across Canada fell 4.8% year-over-year.

• The 10 most tariff-exposed CMAs saw rents fall faster than the 10 least-exposed, although the report says local market conditions remain the bigger driver.

• Oshawa rents dropped 10.8% over the past year, while Windsor rents fell just 2.4%, partly because Windsor has less rental supply.

• Calgary ranks highest for tariff exposure, while Ontario and Quebec face significant exposure through manufacturing and Alberta has 21.4% of jobs in manufacturing, construction and resources exposed.

• Structural steel prices rose 7.2% from Q1 2025, adding another potential cost headache for highrise-heavy markets like Toronto and Vancouver.

• Ontario lost 27,200 manufacturing jobs, while the report says weaker hiring, fewer hours and job cuts can push renters to stay put and landlords to lower rents or offer concessions.

Why This Matters: Tariffs could be hitting rental markets from both directions: weaker employment can soften demand today, while pricier construction materials can make new supply harder to deliver tomorrow. That is an awkward combination for developers, especially in markets where falling rents are already squeezing project economics.