Rent Report for Newcomers: Canada's Firmly a Renters Market

Understanding the Canadian rental market is essential for newcomers to Canada and international students. Besides getting a job, finding an affordable rental home in Canada is a top priority. Rent Report for Newcomers to Canada focuses on helping immigrants understand the Canadian rental real estate market, which cities and regions are affordable and what the average apartment rent is in Canada and in popular provinces such as Ontario, B.C. and Alberta. The latest rental trends show Canada is now firmly a renter's market for newcomers looking for an apartment to rent.

According to the latest rent report from Rentals.ca and Urbanation, asking rent across Canada fell to $2,109 in December, hitting its lowest point in 17 months.

This new rental report also showed a 3.2% fall in rents compared to December 2023. That's the fifth straight month of rent price decreases.

Renting in Canada is Getting Cheaper

However, while Canada is currently a "renters market" with more properties vying for fewer renters, affordability remains a key issue facing newcomers and international students.

"Canada’s rental landscape remains firmly a renters market," said David Aizikov, the author of Rentsync's National Demand Rental Report, "marked by increased competition amongst properties for a shrinking population of renters, and a growing emphasis on affordability."

According to Rentsync, there was an overall decline nationally in rental demand in December, which Aizikov said is typical for the annual holiday season.

Meanwhile, the trend of lower rent asking prices comes after years of rent price growth. In 2023, average rents rose 8.6%, following an increase of 12.1% in 2022. And, rent prices in Canada are still 16.8% higher than they were five years ago, which accounts for the continuing affordability challenges faced by newcomers to Canada.

However, cities such as Quebec City, Saskatoon, Regina, St. Catharines, and Winnipeg, which are often referred to as "affordable," saw rents rise overall in 2024 as Toronto and Vancouver, the two priciest cities and most popular with newcomers, saw rents fall more toward a renters market. Regional disparity in rent prices and trends continues, which makes it essential for newcomers to do their research before arriving.

Ontario Led Rent Price Decreases

Niagara Falls is one of the more affordable mid-sized Ontario cities for renting

Ontario, Canada's most populated province, had the most significant drop in rental prices in 2024. The apartment rents dropped 4.7% to $2,332. However, Ontario is still expensive, second only to British Columbia in terms of rent prices. Rents in B.C. fell just 0.5% to an average of $2,487.

In Manitoba, rents rose 5% last year to an average of $1,618, making it the leader in Canadian rent price growth in 2024.

Alberta, which has been increasingly popular with immigrants and interprovincial renters, saw a significant slowdown in rent prices in 2024. Asking price growth slowed to just 1.6% in 2024, with the average rent reaching $1,718 by December. In 2023, rents in Alberta jumped 15.6%, again showing how quickly rental trends can change.

Purpose-Built Rents Remain Stable

According to the Rentals.ca rent report, purpose-built and condominium apartments saw average rents fall 1.3% annually in December to $2,088. Looking at unit size price changes:

Across property types in Canada:

Rentals within houses and townhouses saw the most significant annual decline in asking rents in 2024, dropping by 7.4% annually in December to an average of $2,181.
Condominium rents in 2024 were down 5.2% year over year to an average of $2,219.
Units within purpose-built rentals had a 0.3% year-over-year decrease in average asking rents to $2,070, following a 12.8% annual increase in purpose-built rents in 2023.

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Price Hike for Three-Bedroom Condos

Meanwhile, asking rents nationally for condo apartments dropped over the past year across all unit types except for popular (and hard to find) three-bedroom units, which experienced rent growth of 0.7% annually in December to an average of $2,927. One-bedroom condo rents had the most significant year-over-year tumble, falling 5.9% to an average of $2,014.

Asking rent prices for one-bedroom apartments have fallen in Canada's rental market

Studios were the only rental unit that saw an increase in asking rents in 2024, increasing 1.7% from December 2023 to an average of $1,591. Asking rents fell for all other unit types compared to December 2023.

Top 12 priciest rental markets in Canada according to the latest Rentals.ca report

Among Canada's largest cities:

According to the Rentals.ca rent report, apartment and condo rents fell this year in many of Canada's largest rental markets:

TORONTO - Canada's largest city (still a popular landing spot for newcomers and international students) saw a 7% annual decline (the largest) in apartment and condo rents to an average of $2,632.

VANCOUVER - Condo and apartment rents in Canada's second-largest city, another popular destination for immigrants, fell 6% year over year to an average of $2,882.

CALGARY - Alberta's largest city saw a 7% decline in condo and apartment rents to an average price of $1,959.

OTTAWA - The nation's capital had a 3.0% annual decrease in condo and apartment rents, recording an average price of $2,165.

MONTREAL - The largest city in Quebec has experienced a decline of 1% in condo and apartment rents, with an average of $1,998.

EDMONTON - Canada’s sixth largest market continued to have annual condo and apartment rent increases, with a growth of 3% year over year to an average of $1,506.

HALIFAX - Condo and apartment rents in the largest city in the Maritimes rose 10 percent from December 2023 to an average rent price of $2,323.

Winnipeg remains an affordable Canadian city

(Drone footage by Lvfree Adventures)

For immigrants and international students looking for a popular two-bedroom apartment, rents fell 7.2% year over year in Toronto to an average of $3,077. In Vancouver, two-bedroom apartment rents were down 6.3% from December 2023 to an average of $3,430.

Working With a Real Estate Agent in Canada to Find Housing

Other Rental Report Highlights:

Rents fell more than 7% in both Toronto and Calgary.
Ottawa, Canada's third most expensive large rental market, saw average rents fall just 2.8% to $2,165.
Edmonton, Canada's sixth largest rental market, saw average apartment rents rise 2.7% in 2024 to an average of $1,506
Alberta had the two most affordable rental markets in December: Lloydminster ($1,192) and Fort McMurray ($1,301).
From September to December, the average asking rent nationally fell by 3.8%, showing how fast Canada's rental market for newcomers can change.

Renters in Canada prioritize affordability and convenience

Windsor was the only Ontario city among cities with the most affordable rents, with an average rent of $1,682 in December.
Quebec City was the fastest-growing market for apartment rents, with an annual growth of 14.9% in December,
Oakville, Ontario, was the second fastest for rent growth at 14.3% year-over-year.
The national average asking rent for shared accommodations (roommates) fell 1.2% from November 2024 and 1.9% from December 2023 to $986.
The largest roommate rent declines in Canada’s biggest cities were in Toronto (down 9.0% to $1,194), Montreal (down 3.8% to $914) and Calgary (down 3.3% to $882).
Roommate rents rose in Vancouver (up 4.0% to $1,394), Edmonton (up 3.3% to $772), and Ottawa (up 4.9% to $1,034).

For Newcomers Renting in Canada, Here's What You Need to Know

According to the most recent Rentsync survey on Key Renter Insights for 2025:

Studio and one-bedroom apartments account for 74% of rental demand in Canada.
50% of renters show interest in living alone.
Young and single renters account for over 30% of the Canadian rental market.
Urban markets have the youngest rental demographic (18 to 34 years).
Renters in Canada prioritize affordability and convenience.
Renters also search for lifestyle amenities (Top 4: gym, in-suite laundry, air conditioning, dishwasher).
60% of renters say they can't find suitable rental options in their price range.
Canadian renter satisfaction has increased by 28%, with more renters recommending their current rental (32% in 2024 vs. 25% in 2023).

What's the Long-Term Rental Outlook for Newcomers?

According to Max Steinman, CEO of Rentsync, newcomers to Canada and international students can expect lower rent prices throughout 2025.

"The 'levelling out' of Canada's rental markets will probably continue," said Steinman. "The surge in demand for the most affordable markets will continue."

"Affordability is the name of the game," he said. "People are less enthused on the uber-expensive markets and flocking to the "affordable" ones."

Shaun Hildebrand, president of Urbanation, said, “Current trends suggest rents may experience further decreases in 2025, which so far have been focused on secondary (city) units.”.

Canada is building more rental housing to increase supply

However, Hildebrand believes that any rent declines in 2025 will be temporary and mostly "minimal."

There is "a long-term under-supply of rental units in the country, " he noted, "with rents set to accelerate in the coming years as the current slowdown in construction works to restrict supply.”

Canadian mortgage broker Ron Butler predicts rents will continue to fall despite a housing crisis in Canada.

"This ongoing drop in rental rates is a result of overbuilding of a specific housing product and the previous ridiculous run-up in rents."

According to Butler, rents in the Greater Toronto Area (and the Greater Vancouver Area) will continue to drop due to a massive number of condos nearing completion (most of which will end up as rentals), an enormous drop in immigration, and Airbnbs being converted to long-term rentals.

Summary for Newcomers to Canada:

Asking rents in most cities across Canada will continue to fall, particularly in large cities such as Toronto and Vancouver. Also, availability should continue to improve, with landlords offering incentives (several months of free rent, free WiFi, etc.), and renters now being able to negotiate.

Renters across Canada continue to search for affordability. Despite the continuing fall in rent prices, housing costs are the No. 1 living expense for most Canadians.

Whether you're looking to rent or buy in Canada, staying current about Canadian housing trends and being proactive is essential.

Pay close attention to interest rates and inflation, as these impact housing.

It remains vital for newcomers and international students to understand the regional differences regarding rental prices and rental demand in Canada so you can choose your new home wisely and make the right decision for your housing and career needs.

With rental affordability likely remaining a long-term concern, newcomers and international students must research cities before arriving in Canada.

In a renters market, landords are offering incentives. Be sure to negotiate

Rental Action Plan for Newcomers:

Be sure to do your research BEFORE arriving in Canada.
Follow Rentals for Newcomers for the latest rental news and trends.
Investigate using a real estate agent to help you find a rental.
Look for landlords and property owners offering incentives, such as free rent and WiFi.
Consider the benefits of becoming a housemate in a home-sharing program.

Rentals for Newcomers is powered by Rentsync, a North American market leader for property technology within the multifamily apartment industry. This gives Rentals for Newcomers access to the latest rental technology, tools, insights, and trends.

Sources:

Rentals.ca, Rentsync, Canadian Press

*Rent prices were accurate when this article was published but may change over time.

Steve Tustin is the Content 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.