Rents are expected to continue falling over the next few months due to labour market weakness, slowing wage growth and reduced immigration. Photo by Getty Images

Rents are declining and will likely continue to do so in many cities across Canada as rising trade tensions take their toll on a weakening labour market, according to a new Royal Bank of Canada report.

RBC said rents have fallen in half of Canada’s major cities, including Vancouver and Toronto, where they are estimated to have dropped $270 and $160, respectively, in the first quarter from a year ago, based on the average asking rent for a two-bedroom apartment.

Rents are also down in Calgary, Halifax and Kelowna, B.C., underscoring a big shift from the period following the pandemic when rents were rising by double digits i

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