Rent Report for Newcomers to Canada
Understanding the Canadian rental market is crucial for newcomers to Canada and international students. Besides getting a job, finding an affordable rental home in Canada remains a top priority. This rent report for newcomers to Canada focuses on helping immigrants understand the Canadian rental market, which cities and regions are affordable and what the average rent is in Canada and in popular provinces such as Ontario, B.C. and Alberta. The latest rental trends in Canada are good news for newcomer renters.
According to the latest national rent survey from Rentals.ca and Urbanation, asking rents for all residential property types in Canada fell to a 15-month low of $2,139 in November. Rents dropped 1.6 percent year over year in November, following a 1.2 percent decrease in October.
A renters market awaits newcomers
However, the rent report shows that despite those declines, average rents in Canada are still 6.7 percent higher than two years ago and 18.8 percent higher than three years ago, which explains the country's affordability issues.
Still, even with the continuing rental affordability challenges, David Aizikov of Rentsync says that heading into 2025, Canada’s rental market remains firmly "a renters market."
Aizikov also says there is "strong competition" among available rental properties for the limited number of active renters, highlighting the rental market's continuing availability concerns.
Renters are choosing outlying cities
Also, renters, including newcomers, appear increasingly to be moving towards more affordable markets outside big cities.
"Households unable to delay a move any longer are showing a strong preference for outlying communities,," said Aizikov, "which offer increased affordability."
Rent decreases in November were mainly within the secondary market for condos and houses (B.C. and Ontario) while asking prices for purpose-built rentals remained stable, according to Urbanation president Shaun Hildebrand.
Rent prices fell in B.C. and Ontario
In November, apartment rent prices in Ontario dropped 6.4 percent year-over-year to an average ask of $2,351. Meanwhile, B.C. saw a 2.3 percent drop from November 2023 to an average of $2,524.
Across the rest of the country, apartment rents rose year over year. Saskatchewan recorded a 12.1 increase year-over-year in November to an average of $1,361. In Alberta, rent was up 3.7 percent from November 2023 to $1,758.
Asking rents in Quebec were stable, with a 0.4% decrease to an average of $1,969.
Meanwhile, rents across the Prairies and Maritimes continued to rise (led by a 12.1% increase to $1,361 in Saskatchewan).
According to the Rentals.ca report, purpose-built and condominium apartments saw average rents drop 0.2% annually in November to $2,120. Looking at unit size price changes:
- One-bedroom apartments saw big declines, with rents falling 1.2% from a year ago to an average of $1,921
- Two-bedrooms fell 1% year over year to $2,302.
- Studio rents rose 5% to $1,629
- Three-bedroom apartment rents increased 5.1% to $2,965.
RELATED CONTENT:
Cheapest Places to Live in Canada
Five Things Newcomers Need to Know About Housing in Alberta
Rent Market Affordability is Strained
In addition to the release of the monthly National Rent Report by Rentals.ca, the Canada Mortgage and Housing Corporation (CMHC) released its Fall 2024 Rental Market Report.
According to the CMHC report, despite a record increase in supply, rental markets in Canada remain tight. The average vacancy rate for purpose-built rental apartments rose to 2.2% (up from 1.5% in 2023). The CMHA report reaffirms that even with the slowdown in rent growth, renter affordability remains "strained."
Here are some of the key insights from the CMHC fall report:
- Rent growth slowed, with rents for 2-bedroom units rising 5.4%, down from the record 8.0% increase in 2023.
- Urban centres like Calgary saw the highest rent growth, while Toronto’s rent growth slowed due to rising vacancies.
- Rent for 2-bedroom condo apartment units reached $2,199 in 2024, up from $2,049 in 2023.
- Renters looking to rent or to move to another rental unit will pay 23.5% more than the previous renter, limiting mobility for renters.
- Increased completions for purpose-built rental apartments and condo apartments provided much-needed relief to tight rental markets.
Supply alone won't solve affordability
The CMHC report concludes that "while new (rental) supply helped ease some pressure, affordability for low-to middle-income rents has yet to improve. It's clear that supply alone isn't enough to address immediate affordability challenges" in Canada.
Among Canada's largest cities:
According to the Rentals.ca report, apartment 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 9.4% annual decline (the largest) to an average of $2,640, marking a 28-month low. The asking price for one-bedroom in Toronto in November was $2,374.
VANCOUVER - Apartment rents in Canada's second-largest city, another popular destination for immigrants, fell 8.9% year over year to an average of $2,888, hitting a 30-month low. The asking price for a one-bedroom in Vancouver in November was $2,534.
CALGARY - Alberta's largest city had the third-largest rent decline among Canada’s top 5 markets, falling 5.8% year-over-year to an average of $1,959. The asking price for a one-bedroom in Calgary in November was $1,634.
OTTAWA - The nation's capital had a 3.0% annual decrease in apartment rents, recording an average of $2,171. The asking price for a one-bedroom in Ottawa in November was $2,016.
MONTREAL - The largest city in Quebec has a decline of 2.3% to an average of $2,001. The asking price for a one-bedroom in Montreal in November was $1,734.
EDMONTON - Canada’s sixth largest continued to have annual rent increases, with a growth of 5.7% in November to an average of $1,556. That's down from an 8.4% year over year increase in October. The asking price for one-bedroom in Edmonton in November was $1,355.
(Drone footage by Lvfree Adventures)
For newcomers looking for a popular two-bedroom apartment, rents for one dropped 10.2% year over year in Toronto to an average of $3,115. In Vancouver, two-bedroom apartment rents were down 11.4% from November 2023 to an average of $3,507.
RELATED CONTENT:
How Newcomers to Canada Can Impress a Landlord
Working With a Real Estate Agent in Canada to Find Housing
Other Rental Report Highlights:
- The average asking rents nationally decreased 0.6% month-over-month in November and fell 2.2% over the past three months.
- Listings for shared accommodations grew rapidly in November, rising 52% compared to a year ago.
- The national average asking rent for shared accommodations increased 3.9% year-over-year to $997.
- Four of the top five most expensive mid-sized markets according to average apartment rents in November were located in B.C., including North Vancouver ($3,222), Coquitlam ($2,979), Richmond ($2,784) and Burnaby ($2,746).
- Shared accommodation rents increased the most over the past year in B.C., with an increase of 4.7% to an average of $1,174
- In Ontario, most of the rent growth for shared accommodations came from Ottawa (+6.4% to $1,045), which has seen many bedrooms available for rent in new townhouses.
- Saskatchewan's cities led all Canadian cities in November with annual rent growth of 17.6% for apartments, followed by three cities in Alberta — Grande Prairie (+15.0%), Lethbridge (+14.1%), and Medicine Hat (+11.7%).
- Windsor ($1,545) had the cheapest one-bedroom rent in Ontario among mid-sized markets in Canada. St. Catharines was Ontario's second cheapest mid-sized city at $1,660.
- Two-bedroom condo apartment rents experienced the largest annual decline of 4.3% to an average of $2,344.
- The difference in the asking rent price for a one-bedroom in Vancouver and Fort McMurray, Alberta, was $1,335.
RELATED STORIES:
Sharing Accommodation in Canada as a Newcomer
For Newcomers Renting in Canada, Here's What You Need to Know
What's the long-term rental outlook for newcomers?
The Bank of Canada has lowered its interest rate four times this year and it's now at 3.75% as of December 2024. It's expected there will be more cuts in 2025.
These significant cuts have lowered mortgage rates and encouraged renters who were waiting for them to enter the home-buying market, thus freeing up more rental units across the country.
Also, the Canadian government has capped international student permits and limited the number of temporary foreign workers allowed into Canada to help ease the rental crisis.
These revised policies around temporary foreign workers and international students appear to have eased pressure on rental housing demand in some markets, particularly cities with large universities.
Canada has also reduced permanent resident targets from 500,000 to 395,000 in 2025, down to 380,00 in 2026, and set a target of 365,000 in 2027.
All of the above factors are expected to impact rental demand and prices going forward.
Max Steinman, the CEO of Rentsync, predicts that for much of Canada, the trend of rent price declines will continue well into 2025 before eventually bottoming out.
Summary for Newcomers to Canada:
With inflation (now at 1.9%) and interest rates continuing to fall, Canadian rent prices will likely continue falling in big cities like Vancouver and Toronto but rise in some mid-sized and smaller centres, such as cities in western Canada and the Maritimes.
The affordability search will remain a key motivator for renters. Shelter costs are the No. 1 cost of 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 attention to interest rates and inflation, as these impact housing.
Also, there may be a federal election in Canada, and it's unknown what impact the election of Donald Trump in the U.S. will have on the Canadian economy in 2025.
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.
As rental supply continues to struggle to meet demand and affordability remains a concern, newcomers and international students must do their city research before they arrive in Canada.
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.
- Consider the benefits of becoming a housemate in a home-sharing program.
Sources:
Rentals.ca, Rentsync, Canadian Press, CBC, CMHC
*Rent prices were accurate when this article was published but may change over time.
