Immigrants Face Growing Challenges to Find Affordable Rentals

Rent prices in Toronto, one of the most popular settlement spots for immigrants, are falling, but the city remains one of the most expensive to live in Canada.

The most recent national rent report from Rentals.ca and Urbanation shows that only the B.C. cities of North Vancouver and Vancouver have higher rents than Toronto.

The Rentals.ca report reveals that the asking rent for a home (of any type) in Canada rose 8.8 percent in March compared with the same month a year ago. The good news for newcomers is that it was down from February.

The average asking rent for all home types was $2,181 last month.

Two-bedroom apartments post a big increase

Asking rents in March month-over-month fell 0.6 percent.

The average asking rent for a one-bedroom unit in Canada was $1,915. That's an increase of 11.3 percent from March of 2023.

Two-bedroom apartments, popular with newcomers, had an average asking price of $2,295. That's a hike of 10.6 percent from March 2023.

Overall, asking rents for purpose-built rental apartments in March increased 12.7 percent compared with a year earlier to reach an average of $2,117. Condominium apartment rents averaged $2,321, up 3.9 percent from March 2023.

Helping renters to 'bargain fairly'

The Canadian federal government has pledged to deal with the growing financial pressure that renters face. In March, Prime Minister Justin Trudeau announced a bill of rights for renters and other supports.

The bill of rights, to be created and implemented in partnership with provinces and territories, would require landlords to disclose a clear history of apartment pricing “so renters can bargain fairly.”

The measures announced by Trudeau will also guarantee that rental payment history is considered on credit scores, thus giving first-time home buyers a better chance at getting a mortgage with a lower interest rate.

According to Rentals.ca, these are the 12 most expensive cities for rent prices in Canada

Meanwhile, the March increase in the national average came as the average asking rents for purpose-built and condominium apartments in B.C. fell 1.9 percent year-over-year to $2,494.

Ontario had the second-highest average asking rents last month, up 0.4 percent from March 2023 to $2,410.

Asking price declines in Toronto and Vancouver

Alberta and Saskatchewan posted the fastest-growing rents, with total average asking prices up 18.3 percent and 18.2 percent annually last month, respectively, rising to $1,728 and $1,297.

As for cities, the average asking rent in Vancouver fell by 4.9 percent to $2,993 last month. While Vancouver's rent remains the highest among Canada’s largest cities, this marks the first time since July 2022 that it has fallen below the $3,000 level.

Toronto’s average rental prices declined 1.3 percent month-over-month to $2,782, representing the third consecutive month of annual rent declines.

The average asking rent for apartments is on the rise in Canada, according to Rentals.ca

Edmonton had the most robust rent growth among Canada’s largest cities, reaching an average of $1,507 in March—a 15.9 percent gain from the same month in 2023.

Here are some critical March 2024 results from the Rentals.ca National Rent Report for the Canadian rental market.

1 - Rent growth across the country moderated. Average asking rents rose 8.8 percent in March, slightly slowing down from February's 10.5 percent increase.

2 - Purpose-built rentals saw a 12.7% YoY increase, averaging $2,117.

3 - On average, condo rentals grew slower, up by 3.9 percent to $2,321.

4 - Regional disparities: Alberta leads with an 18.3 percent annual increase, while B.C. and Ontario saw declines.

5 - Saskatchewan saw significant growth, with an 18.2 percent rise.

The Canadian rental market continues to tighten

As for what type of Canadian rental market newcomers and international students will face for the rest of the year, David Aizikov, writing in Rentsync's National Demand Rental Report, says many renters are, for now, staying put.

"The long-term tightening of market conditions," said Aizikov, "growing cost of living and limited diversity of supply has led to a cycle of renters remaining in place for fear of having to pay higher rents, which in turn reduces turnover and limits the supply of available units thus creating tightened market conditions and as a result growing rents."

Aizikov said current renters, who are already feeling the squeeze of inflation, will "have no choice but to remain in place longer for fear of not being able to afford the cost of a move alongside higher monthly rents."

Because of this, he predicts that "prospective renters (will be) more desperate than ever to find affordable housing options."

Roommate rent prices continue to rise

For those newcomers and international students pondering becoming roommates, the Rentals.ca report notes that rent prices for shared accommodations continued to climb in March.

The national average asking price was above $1,000 for the fourth straight month.

Housemates pay less than roommates with more benefits

According to the report, “roommate rents were highest in BC, reaching a record-high average of $1,195. In Ontario, rents for shared units averaged $1,089, while Quebec and Alberta had average asking rents of $900 and $876, respectively."

Logically, the most expensive of Canada's largest cities "had the highest asking roommate rents, averaging $1,416 in Vancouver and $1,273 in Toronto.”

If you have a question, please email us at rentals@prepareforcanada.com

Steve Tustin is the Editor for Rentals for Newcomers and a contributing editor for Prepare for Canada. He is also the former managing editor of Storeys.com and a former senior editor at the Globe and Mail and the Toronto Star.

*Rentals for Newcomers used no AI-generated content in the writing of this story, and all sources are cited and credited where possible.