Rent Report for Newcomers: How Far and Fast Will Rent Prices in Canada Fall?

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 popular provinces such as Ontario, B.C. and Alberta. The latest Canadian rental trends show that rent prices continue to fall as supply outpaces demand, new apartment completions continue, and population growth through immigration slows.

According to the most recent rent report from Rentals.ca and Urbanation, the average asking rent in Canada fell compared to a year ago for the fifth consecutive month in February, dropping 4.8% to $2,088.

That's the lowest level since July 2023.

The February year-over-year drop was the steepest since April 2021. As a comparison, in February 2024, asking rents in Canada had increased 10.5% from February 2023.

However, driving home precisely how the issue of affordability remains a key concern for newcomers and international students arriving in Canada, average asking rents are still 5.2% higher than in February 2023 and 16.9% higher than five years ago in February 2020.

Rents in Canada Keep Falling

Since February 2024, average asking rents in Canada have fallen $105 per month, a larger annual decline than the one that occurred during the COVID-19 pandemic from February 2020 to February 2021.

In comparison, from February 2023 to February 2024, rents in Canada increased by $209 a month. Overall, the average asking rent in Canada remains $302 per month above what it was five years ago.

Urbanation president Shaun Hildebrand said, “Rents in Canada are softening as supply overtakes demand."

"Apartment completions are currently running at record highs...population growth has slowed, and the economy faces heightened risks due to a potential trade war with the U.S.," said Hildebrand.

Canada’s population grew by just 1.8% in 2024, hitting 41.5 million. According to Statistics Canada's latest estimates, that's down from the record 3.1% growth in 2023 and 2.5% in 2022.

Rent Prices in Canada Will Continue to Fall

According to Hildebrand, renters, including newcomers and international students, should "expect rents to continue decreasing in the near term as these trends likely remain in place."

Rental demand in Canada plummeted 9.6% in February, according to Daniel Aizikov of Rentsync. He attributed this dramatic drop to severe winter storms across southern Ontario and Quebec and economic uncertainty.

"Many renters likely paused their searches, waiting for better weather and more clarity on potential economic impacts, rather than stepping away from the market entirely," said Aizikov.

However, while decreased demand is good news for newcomers to Canada and international students, Aizikov pointed out in Rentsync's National Demand Report that affordability is an ongoing issue.

Canadian Landlords Are Offering Incentives

According to the recent Rentals.ca report, February marked the fifth consecutive month of year-over-year rent decreases, and average asking rents now sit at their lowest level since July 2023.

In this "falling rent prices and lower demand market," landlords nationwide offer incentives such as one or two months of free rent, free WiFi and other concessions. Newcomers and international students should take advantage of these deals through negotiations before signing a lease.

Falling rent prices and rental demand have increased vacancy rates , rent report shows

Ontario Again Led Rent Price Decreases

Ontario experienced the most significant rent decline in February among Canadian provinces, with the average rate dropping 4.2% year over year to $2,329.

British Columbia saw a smaller annual decline of 1% to an average of $2,457.

Alberta had a slight 1.4% annual gain in its average asking rent to $1,732, but Calgary, the province's largest city, saw rents drop 7% to an average of $1,916.

Here's a look at the rent prices in the other provinces:

Quebec (-0.6% to $2,329).
Nova Scotia (+1.2% to $2,171)
Saskatchewan (+5.2% to $1,329)
Manitoba (+3.4% to $1,606).

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Rent Prices Fell for All Apartment Units

Apartment asking prices fell in Toronto, Vancouver, and Calgary over the past year across all unit types. As mentioned, the most minor decreases were reported for three-bedroom apartments.

Two-bedroom apartments in Toronto saw the largest annual rent decline, down 7.0% to $3,081. In Vancouver, rents tumbled the most for one-bedroom apartments, down 5.8% to $2,526.

In Calgary, studio and one-bedroom rents had the most significant annual drops of 9.6% to $1,395 and 7.4% to $1,682, respectively.

In Ottawa, apartment asking rents increased year-over-year for two-bedroom apartments (up 2.6% to $2,569) and three-bedroom apartments in Montreal (up 4.0% to $2,763).

Bucking the national trend, rents in Edmonton increased across all unit types in Edmonton over the past year, propelled by a 9.1% increase in studios to $1,109 and a 3.1% increase in three-bedrooms to $1,959.

In Ottawa, asking rents for two-bedroom apartments are on the rise

Roommate Rents Fell in Toronto

Nationally, rental listings for shared (roommate) accommodation plummeted 29% from the record high in January. The asking rent for shared accommodation was $964. That's 4.6% lower than February 2024.

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

Larger cities such as Toronto, Vancouver, Calgary, Edmonton and Montreal had year-over-year rent declines for shared accommodations in February. The largest annual drops were in Toronto (-8.2% to $1,176) and Montreal (-8.0% to $870).

The Top 15 priciest most expensive rental markets in Canada in February, according to the latest Rentals.ca report

Among Canada's largest cities:

According to the Rentals.ca report, apartment and condo rents keep falling year-over-year in many of Canada's largest rental markets:

TORONTO - Canada's largest city (a popular landing spot for immigrants) saw a 7% year-over-year decline in February to an average of $2,615. The asking price for a one-bedroom in Toronto in February was $2,359.

VANCOUVER - Apartment rents in Canada's second-largest city, another popular destination for immigrants, fell 5% year-over-year in February to an average of $2,870. The asking price for a one-bedroom in Vancouver in February was $2,518.

CALGARY - Alberta's most expensive city saw rents fall 7% year-over-year in February to an average of $1,916. The asking price for a one-bedroom in Calgary in February was $1,583.

OTTAWA - The nation's capital had a 0% annual decrease in February in apartment rents, recording an average of $2,217. The asking price for a one-bedroom in Ottawa in February was $2,032.

MONTREAL - The largest city in Quebec has a decline of 3% in February year-over-year to an average of $1,974. The asking price for a one-bedroom in Montreal in February was $1,744.

EDMONTON - Canada’s sixth largest city continued to have annual rent increases, with a growth of 3% in February to an average of $1,531. The asking price for a one-bedroom in Edmonton in February was $1,330.

Other Rental Report Highlights:

Average asking rents for condo apartment rents fell 7.6% annually to a 26-month low of $2,192 in February, declining for the sixth month.
The smallest condos experienced the most significant rent decreases, with a 10.0% year-over-year drop in studio rents to $1,772.
Vancouver, Burnaby and Toronto were the most expensive cities to rent in Canada. The average asking price for a one-bedroom apartment rental in Vancouver was $2,518 per month, down 5.1% annually, while Toronto’s average rents fell to a 30-month low of $2,359 — down 5.4%.
The top nine most costly cities all exceed the national average rent of $2,088.
Guelph, Ontario, was the only city in the top 10 which did not exceed the national average ($2,084 in Guelph for a one-bedroom).
Outside of Ontario and BC, Halifax is the most expensive city to rent in, with a one-bedroom going for an average of $2,033 and a two-bedroom priced at $2,504.
Atlantic Canada saw the biggest rise in rent prices, with average rents increasing by 6%.

Halifax is the most expensive Canadian city for rents outside of Ontario and B.C.

Oakville, Ontario, is second among Canada’s most expensive small- and mid-sized cities, with an average apartment rent of $2,802.
Outside of the Greater Toronto Area, the most expensive Ontario market was Kanata, which ranked seventh with an average apartment asking rent of $2,636.
Cities with the lowest average apartment asking rents in Ontario were Windsor ($1,620), Welland ($1,726), Chatham-Kent ($1,787), Sarnia ($1,797), and St. Catharines ($1,859).
Seven of Canada's top 10 most affordable markets were in Alberta, led by Lloydminster and Fort McMurray, with average apartment asking rents of $1,178 and $1,303, respectively.
The difference in rent between Vancouver (ranked No. 1) and Fort McMurray (ranked No. 35) was $1,310.
Rent prices for houses or townhomes fell 10.4 percent in February from February 2024.change year-over-year. Condo prices were down 7.6% year-over-year. Apartments saw only a 1.9 percent decline.

Working With a Real Estate Agent in Canada to Find Housing

The Long-Term Canadian Rental Outlook for Newcomers

Falling prices make now a great time for newcomers to Canada to rent, but Urbanation's Hildebrand warns that these falling prices are probably temporary and won’t drop much further. He believes there still aren’t enough rental units to cope with a still-growing population, and as apartment construction slows, rents will rise.

A recent study by the IG Wealth Management Financial Confidence Index in partnership with Ipsos Canada showed that 56 percent of Canadians expect housing affordability to worsen.

Rentsync's Aizikov asserts that the Canadian rental market "remains on track for stabilization rather than sustained decline despite the February fall in rental demand." Many renters, says Aizikov, paused their searches, waiting for better weather and more clarity on potential economic impacts rather than stepping away from the market entirely.

"If there are no major financial disruptions," he said, "we expect a gradual rebound in rental activity."

Affordability is more important to most renters than amenities

However, says Aizikov, renters are becoming more cost-conscious. He predicts this will continue to affect the most expensive rental markets, such as the Toronto and Vancouver areas, where even strong amenities and lifestyle benefits may not be enough to keep rental demand steady. He says smaller cities, suburban neighbourhoods, and communities with lower living costs and more affordable housing options will see increased rental demand going forward.

Approximately five million Canadian households are renters, according to the 2021 census (the next one is set for 2026). That means about 33% of Canadians rent. It's believed that in more than half of Canada's major cities, the number of renters exceeds the 33% national average.

Rent Report Summary for Newcomers to Canada:

Inflation in Canada has risen unexpectedly to 2.6%, but interest rates continue to fall. Canadian rent prices are expected to continue to decline nationally, particularly in big cities and regions like Vancouver and Toronto. However, as February rent prices show, rents are still rising in some mid-sized and smaller centres, specifically in western Canada and the Maritimes.

The affordability search will drive both domestic and newcomer renters in the months ahead as rental costs remain far and away their No. 1 Canadian cost of living expense.

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

Pay attention to interest rates, inflation and the continuing trade war with the U.S., as these impact rental housing to varying degrees.

Canada now has a new Prime Minister in Mark Carney, and there could soon be a federal election in Canada. Again, it's uncertain what impact and election and U.S. tariffs will have on the Canadian economy and rental asking prices for the remainder of 2025.

It's more essential than ever that newcomers and international students 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. Your goal should be to avoid a costly and painful relocation.

Affordability will remain a key concern, so newcomers and international students must do their city research before they arrive in Canada.

Rental experts advise starting your search 60 days before when you plan to move in.

Rents are predicted to continue to fall in Toronto

Rent Report Rental Action Plan for Newcomers:

Do your research BEFORE arriving in Canada.
Follow Rentals for Newcomers for the latest rental news and trends.
Consider using a real estate agent to help you find a rental.
Look for landlords and property owners offering incentives and negotiate.
Consider the benefits of becoming a housemate in a home-sharing program.
Prepare a realistic budget before arriving in Canada, and have realistic expectations about what you can afford in the city where you want to settle.

Sources:

Rentals.ca, Rentsync, Canadian Press, CMHC, Point2Homes

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.

Rentals for Newcomers provides rental solutions for newcomers and 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.