The Pace of Rent Price Hikes Slows in Many Canadian Cities

What kind of rental housing market awaits newcomers to Canada and international students who've just arrived or are arriving in late August and early September in search of their first Canadian rental home?

The good news for immigrants is that rent price increases are slowing in Toronto and Vancouver, two popular destinations with newcomers from India, China and the Philippines.

However, according to the most recent report from Rentals.ca and Urbanation, rents are still rising year-over-year in many mid-sized cities, such as Edmonton, Winnipeg, and Regina, which are also increasingly popular with immigrants.

Overall, the latest report says rents are still rising in Canada, but the year-over-year pace of growth has slowed.

Nationally, average asking rents grew by 0.8 percent from June, reversing the previous month's dip of 0.8 percent. As we approach the end of the summer season, this increase is a return to average market rents hovering just above $2,200.

The Rentals.ca and Urbanation report reveals that asking rents for ALL residential property types averaged $2,201 in July. That's up 5.9 percent from last year.

That 5.9 percent year-over-year increase is the slowest rise for the previous 31 months. Over the past few years, annual growth has sometimes been higher than 10 percent.

The 15 most expensive cities for renting in Canada in July 2024 according to Rentals.ca

As mentioned, some cities still saw significant rent price jumps from last year.

Vacancy rates in many cities remain at record lows (around one percent). This creates an extremely competitive market for immigrants and international students.

Canada remains committed to welcoming 450,000 new permanent residents by the end of this year and admitting another 500,000 in 2025 (though this number may change).

Rent prices rise in Western Canada

Halifax saw an 18.2 percent year-over-year increase, and Western Canadian cities such as Saskatoon, Edmonton, and Regina also saw double-digit increases.

Meanwhile, the ever-popular "Gateway Cities of Vancouver and Toronto saw rent price declines.

Vancouver rent prices dropped seven percent from last year, and Toronto rent prices fell five percent (mainly due to many condo building projects reaching completion).

Out of all Urbanation and Rentals.ca rental listings in Canada, the average for a zero-bedroom studio for July was $1,625 (down from $1,627 in June 2024), a one-bedroom was $1,929 (up from $1,918), and a two-bedroom was $2,299 (down from $2,301).

The report also notes that rent increases for purpose-built and condominium apartments increased year over year in all provinces except Ontario and British Columbia.

Saskatchewan experienced the fastest annual growth for apartments and condos at 22.2 percent.

Vancouver, BC; Burnaby, BC; (3) Toronto, ON; Mississauga, ON; and Burlington, ON are the most expensive cities (of the 35 large and mid-sized cities) in the report.

The most affordable (of the 35 cities in the report) are Saskatoon, SK; Fort McMurray, AB; Regina, SK; Edmonton, AB; and Winnipeg, MB.

It's important to note that after a slow start to 2024, the rental market in Canada is starting to pick up, although later than usual.

The tide has turned and we are now well into a renter’s market - Daniel Aizikov, Rentsync

"The lack of affordable housing has driven many prospective renters to remain in place and forgo a move," writes David Aizikov in Rentsync's latest National Demand Report.

"However, not all are impacted and many households, whether by choice or necessity, are returning to the rental market and driving up demand in the final stretch of the summer months."

In the report, Aizikov says, "The tide has turned, and we are now well into a renter’s market."

He said renters "have become more cautious and selective when making housing decisions and, in some cases, have left their cities, regions, and provinces in search of greater affordability and new opportunities."

August Rental Highlights for Newcomers:

Though apartment rents continue to grow year-over-year, they remain more affordable than condo rents.
Asking rents for purpose-built and condo rental apartments rose by 0.5 percent month-over-month in July to an average of $2,156.
Compared to August 2024, apartment rents rose 7.4 percent, due mainly to the annual increase in the number of purpose-built rentals, which rose 8.9 percent year-over-year to an average of $2,131 (up $10 from June).
Condo rental units increased by a much smaller percentage of 1.9 percent to an average of $2,334 (a $14 increase in average rents from June).
While studio rent prices for condos fell 2.8 percent annually in July to an average of $1,887, purpose-built rental studios stayed more affordable (growing 13.7 percent to an average $1,610).
Average rents for purpose-built rentals were highest for a) studio units at 13.7 percent, b) three-bedroom units coming in a close second at 12.1 percent, c) two-bedroom units at 9.1 percent, and d) one-bedroom units at 7.2 percent year-over-year.
Despite sizeable annual price hikes, purpose-built rental apartments average rents are $203 lower than condo units.

These are the cheapest mid-sized cities for rent prices in Canada according to Rentals.ca

Rental Action Plan for Newcomers:

Register for FREE for Rentals for Newcomers.
Register for our FREE Accommodation in Canada webinar.
Read our latest Housing Newsletter for Newcomers and International Students.

SOURCES: Canadian Press, Rentals.ca, Rentsync

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.

*No AI-generated content was used in the writing of this story, and all sources are cited and credited where possible.