London rents fall faster than national average amid weaker demand

New rental suites are available in London’s SoHo neighbourhood, at South and Colborne streets. Photo taken Tuesday, April 14, 2026.

Rents across Canada dropped in March by more than five per cent, one of the biggest annual declines in recent years, with London prices falling at an even faster pace year over year, new data show.

The 5.3 per cent drop across the country brought the average asking price for all unit types to $2,008 in March, according to Rentals.ca’s latest market analysis.

Though one-bedroom units in London edged up 0.9 per cent from February to March – breaking a streak of eight consecutive drops – at $1,663 they are about $103 lower than at the same time last year.

It was a similar story for two-bedroom apartments in the city, which fell 5.7 per cent year over year. Average asking prices for this type of unit now sit at $2,055, more than $100 lower than in 2025.

“The decrease we saw on a year-over-year basis is the largest decrease in almost five years,” said Rentals.ca’s Giacomo Ladas.

He attributed the recent trends to a significant drop in demand at a time when hundreds of new units hit the market.

In London, that trend has been compounded by a large drop in the number of international students – a major source of local demand – amid lower immigration targets set by the federal government.

“We’re just not seeing many Canadians, and through international migration, increasing the need for apartments right now,” Ladas said.

But worries about the overall state of the economy, including higher gas prices amid the war between the U.S. and Iran, are also likely having an impact, Ladas added.

“Whenever there’s uncertainty in any facet (of the economy), there’s always going to be hesitation for the big decisions, and renting an apartment is a part of that,” he said.

That is likely the case for renters who have been in their units longer and whose rents are significantly lower than current prices. Ladas noted that while the market has softened significantly over the past year, rents remain “expensive” for many, with today’s levels still $300 to $400 above 2021 levels in many markets.

Another group being hit by current prices is younger people, Ladas said.

He pointed to Canada’s youth unemployment rate of 13.8 per cent in March. Locally, London recorded Canada’s highest unemployment rate at 9.1 per cent in March, according to Statistics Canada.

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“We’re seeing really low demand and, of course, that’s driven by a variety of factors, but one of those is that young renters right now are having a difficult time finding work . . . and young renters, who drive a ton of rental demand, are currently under the most pressure,” he said.