Here are 8 Canadian cities with the cheapest rents for newcomers and international students

Where are the 8 mid-sized Canadian cities with the lowest 2024 rent prices for immigrants to Canada and international students this spring?

Finding cheap and affordable rental housing is perhaps the major challenge facing immigrants when they arrive in Canada. 

With Canada in the midst of a housing crisis, finding that first place to rent is an increasingly large part of the settlement process—along with finding a job—when choosing a city to call home.

According to a recent Rentals.ca survey, price increasingly matters to renters, whether they are newcomers or domestic Canadians.

 

The Rentals.ca survey found that 69 percent of respondents pointed to the unaffordability of rentals in their region as their reason for moving. Plus, 19 percent of survey participants indicated their interest in moving to a new (cheaper) city for their next home.

Part of the current challenge for newcomers is that rent prices across Canada continue to rise, particularly in the popular gateway cities of Toronto/GTA and  Vancouver/GVA (however, monthly increases have slowed in both of those cities). 

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According to the most recent report from Rentals.ca and Urbanation, in March of 2024, most major markets across Canada saw rent increases, which led to an average national high of $2,181 per month.

That's an 8.8 percent increase from a year ago, in March 2023.

Newcomer are driving rental demand 

Immigration Minister Marc Miller announced in November 2023 that Canada plans to settle 485,000 newcomers in 2024 and 500,000 in 2025.

 

Canada is currently home to a record number of international students and temporary workers (although the rules for the number of students and temporary workers being admitted have been tightened).  

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So, where should newcomers live and rent? How much will you pay? How much can you pay?

The lowest rents are found in Western Canada

Once again, according to the newest Rentals.ca  report, the cities with the cheapest rents continue to be found in Western Canada. 

 

Five of the cheapest mid-sized cities are in the western provinces of Manitoba, Saskatchewan and Alberta.

The cheapest place to rent among Ontario's popular mid-sized cities is Sarnia ($1,537 for a one-bedroom, followed closely by nearby Windsor, Ontario ($1,546 for a one-bedroom).

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As for the most expensive cities for rent, according to the Rentals.ca report for March, seven of the top 10 most expensive Canadian cities for rent prices are found in Ontario and specifically in the GTA. 

As for other Ontario cities with cheaper rents, Niagara Falls and St. Catharines (both part of the Niagara Region), are listed as among the 12 cheapest mid-sized cities in Canada. 

Both cities are increasingly popular with newcomers and are within easy commuting distance of Hamilton and the western half of the GTA (including Toronto). They are also on the border with the U.S. 

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Here are the seven Canadian cities with the cheapest rents, according to Rentals.ca:

1 - Saskatoon, Saskatchewan

The province's largest city, home to the University of Saskatchewan, sees a one-bedroom apartment renting for $1,197.

Located on the banks of the South Saskatchewan River, Saskatoon is a multicultural city affectionately known as the City of Bridges. 

Saskatoon's rent prices are rising (6.5 percent for one-bedroom and 15.1 percent for two-bedroom apartments year over year). A two-bedroom now costs an average of $1,428 a month.

 

2 - Regina, Saskatchewan

A one-bedroom goes for $1,267 a month in Regina, the second-largest city in the heartland of the Prairies. That's a substantial 17.6 percent increase from March of last year. A two-bedroom costs $1,476, which is a 16 percent year-over-year jump.

 

3 - Lethbridge, Alberta 

Located close to the Rocky Mountains, Lethbridge is in the south-central region of Alberta. It is known for its warm summers and mild winters

Due to its location, Lethbridge is a major hub for transportation and business in southern Alberta. The city is about a two-hour drive south of Calgary and just over one hour north of the United States border into Montana.

A one-bedroom apartment in Lethbridge currently rents for $1,282. A two-bedroom is $1,486.

4 - Quebec City, Quebec

At No. 4, Quebec City, the capital of La Belle province, offers $1,288 for a one-bedroom and $1,750 for a two-bedroom, according to Rentals.ca. Bonne chance mes amis!

5 - Edmonton, Alberta

Edmonton is the capital of Alberta and the second-largest city in the province, next to Calgary. Rich in Alberta's massive oil, gas and oil sand reserves, Edmonton is called the “Oil Capital of Canada.” A one-bedroom rents for $1,339, while a two-bedroom rents for $1,654. 

6 - Winnipeg, Manitoba 

Known as the “Gateway to the West,” Winnipeg is Manitoba's capital and the province's largest city. It is located in the eastern part of the Canadian Prairies in Western Canada. 

Originally a trading post for Indigenous people before the arrival of European settlers, The 'Peg is a railway and transportation hub with a diversified economy. Winnipeg became home to thousands of newcomers and is known as a multicultural city (Canada's sixth largest).

A one-bedroom apartment in Winnipeg, home to the Winnipeg Jets of the National Hockey League, costs $1,365, while a two-bedroom apartment rents for $1,741.

7 - Sarnia, Ontario

Sarnia is the largest city on Lake Huron, with a population of 72,047. It is located in Southwestern Ontario, directly across from Port Huron, Michigan, in the U.S. 

A one-bedroom in Sarnia rents for $1,537 per month, while a two-bedroom rents for 1,771.

8 - Windsor, Ontario 

located in Southwestern Ontario on the United States border with Detroit, Michigan, Windsor is known as the “Automotive Capital of Canada.” A rich agricultural region in Essex County also surrounds the city. Windsor is the southernmost city and is undergoing an economic resurgence.  Rent for a one-bedroom is $1,546, and $1,885 for a two-bedroom. 

 

 

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Rental experts agree that Canada's still ambitious immigration targets and the flow of refugees from Ukraine, Afghanistan (and perhaps Gaza and Israel), have a significant impact on rental markets and prices.

Finding a place to rent may become harder, experts warn, as vacancy rates in popular cities sit at around 1.5 percent.

Interest rate cuts may affect rent prices

However, Sean Hildebrand of Urbanation told BNN Bloomberg recently that 2024 will "be a slower year for rent increases, particularly in the more expensive markets."

So far, that prediction is proving accurate as rent price increases have stalled in Toronto and Vancouver.

Hildebrand predicts that if inflation continues to slow down this year and the Bank of Canada begins cutting its interest policy rate (a cut is now expected as early as June or July), the pressures on rent prices could ease, with more Canadians moving into homeownership.

Canada's most expensive cities for rents

And what are the top three most expensive places to rent in Canada? North Vancouver is No. 1, at $2,704 a month for a one-bedroom; Vancouver is No. 2, at $2,633 a month, and Toronto is No. 3, at $2,471 monthly.  

Immigrants and international students may want to head to the Prairies or southwestern Ontario for those cheap rents. 

You can view the full Rentals.ca report here. For information about rental demand in various Canadian cities, check out Rentsync's National Rental Demand Report. 

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.

© Rentals for Newcomers 2024