Rent Report for Newcomers: Rental Demand Will Keep Falling

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. The Rent Report for Newcomers to Canada focuses on helping immigrants understand the Canadian rental real estate market, including which cities and regions are affordable and what the average apartment rent is in Canada, as well as in popular provinces such as Ontario, British Columbia, and Alberta. The latest Canadian rental data indicate that rent prices and rental demand continue to decline in major cities such as Toronto, Vancouver, and Calgary. These trends are predicted to continue throughout 2025.

In March, the average asking rents in Canada fell 2.8% from a year ago to $2,119. According to the most recent rent report from Rentals.ca and Urbanation, March marked the sixth consecutive month of annual rent decreases.

However, month-over-month, the average asking rent rose 1.5% in March from February. That's the first MONTHLY rent price hike since September 2024. However, despite the monthly gain, average rents remain down 2.8% year-over-year.

Rent Affordability Remains a Newcomer Concern

Rental demand in Canada, according to Rentsync's National Demand Report, increased slightly in March but has declined "steeply" over the past two years and is not expected to rebound to previous levels.

However, affordability remains the primary concern for newcomers and international students arriving in Canada. Since March 2020, average asking rents nationally have risen 17.8%. According to the latest Rentals.ca report, rents for purpose-built units have risen 35.5% over the past five years to an average of $2,086. That's despite a 1.5% drop in the past year.

Rents in Canada and Demand Keep Falling

According to Rentals.ca, the increased rental supply resulting from record apartment completions continued to drive down rents in most parts of the country.

The annual decline in March was notably smaller than in February, at 4.8%, as rents increased 1.5% month-over-month—the first monthly increase since September 2024.

The improvement in rents during March over the previous month was due to a seasonal increase in demand following a slowdown in lease activity during the winter months. According to Rentals.ca, renters may have become more active due to recent improvements in affordability.

Cutbacks in foreign student enrollment and in immigration have affected rental vacancy rates

Ontario Leads Rent Price Declines

Once again, annual asking rent decreases for apartments were mainly focused in Ontario, where rents fell 3.5% to $2,327 in March. Quebec was a close second, with rents dropping 2.5% to $1,949

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

B.C. (-0.6% to $2,480)
Alberta (-0.4% to $1,721)
Saskatchewan (+3.0% to $1,336)
Manitoba (+2.0% to $1,592)
Nova Scotia (+2.4% to $2,199)

Can Newcomers Rent to Own a Home in Canada?

3-Bedroom Apartments Hard to Find - And Popular

According to the Rentals.ca report, all Canadian provinces experienced annual growth in the popular, but scarce, three-bedroom rents in March. The average asking price for a three-bedroom apartment in British Columbia (B.C.) was $3,427. In Alberta it was $2,169, in Saskatchewan $1,716, in Ontario $3,019, and in Quebec $2,630.

Canadian Landlords Are Offering More Incentives

Whatever size or type of apartment newcomers are considering, the critical thing to know is that Canadian landlords across the country are offering lower rents, incentives, and concessions to attract quality tenants as rental demand declines.

Some of the incentives landlords are offering include reduced rent, 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.

Edmonton is one of Canada's most affordable large cities

Roommate Rents Fell Again in Toronto

Shared or roommate accommodation in Canada remains a popular option. According to Rentals.ca, the number of shared accommodation listings rose 7% in March. The average asking rent for shared accommodation nationally was $959, a 4% decrease from March 2024.

Rents for shared accommodation decreased in Canada's major urban centres, including Toronto, Vancouver, Calgary, and Montreal. Toronto experienced the most significant year-over-year drop, down 8% to $1,166, followed by Montreal, which was down 9% to $862.

Here's What Newcomers Renting in Canada Need to Know

In Ottawa, roommate asking rents rose 7% from a year ago to $1,018, according to Rentals.ca.

The Top 10 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, the average rent year-over-year for apartments and condos combined keeps falling in many of Canada's largest rental markets:

VANCOUVER - Combined apartment/condo rents in Canada's second-largest city, another popular destination for immigrants, fell 6% year-over-year in March to an average of $2,822. Meanwhile, the asking price for a one-bedroom apartment in Vancouver in March was $2,531.

TORONTO - Canada's largest city, a popular destination for immigrants, saw a 7% year-over-year decline in March to an average of $2,589. The asking price for a one-bedroom in Toronto in March was $2,313.

CALGARY - Alberta's most expensive city saw rents fall 8% year-over-year in March to an average of $1,915. The asking price for a one-bedroom in Calgary in March was $1,588.

OTTAWA - The nation's capital experienced a 1% annual increase in apartment and condo rents in March, with an average rent of $2,219. The asking price for a one-bedroom in Ottawa in March was $2,020.

MONTREAL - The largest city in Quebec experienced a 4% decline in March compared to the same month in the previous year, to an average of $1,968. The asking price for a one-bedroom in Montreal in March was $1,724.

EDMONTON - Canada’s sixth-largest city continued to have annual rent increases, with a growth of 1% in March to an average of $1,522. The asking price for a one-bedroom in Edmonton in March was $1,310.

Other Rental Report Highlights:

Condo rents, which fell 3.8% from a year ago to an average of $2,232, were only 0.6% higher than five years earlier in March 2020.
One-bedroom apartment rents increased the most year-over-year in Manitoba (+5.3% to $1,428) and Nova Scotia (+6.0% to $2,006).
Toronto and Vancouver rents fall to more than 30-month lows..
Two-bedroom apartment rents increased 3.6% annually in Ottawa to an average of $2,599,
During the past five years, purpose-built rents increased the most in Calgary (+43.5%), followed by Edmonton (+26.7%) and Vancouver (+26.7%).
BC and Ontario cities are the most expensive, while Alberta and Saskatchewan are the most affordable.
Outside of the GTA, the most expensive markets in Ontario were Kanata ($2,564), Guelph ($2,275) and Waterloo ($2,258).
The most affordable markets in Canada were located in Alberta and Saskatchewan, including Lloydminster ($1,206), Fort McMurray ($1,300), Regina ($1,320), and Saskatoon ($1,414).

St. Catharines has some of the most affordable rents in Ontario

The city with the fastest rising apartment rents in Canada during March was Grande Prairie, with a 14.1% year-over-year increase.
The following three fastest-growing cities for rents were located in Quebec and included Sherbrooke (+9.8%), Longueil (+8.8%), and Brossard (+7.9%).
The fastest rising rents in Ontario were found in Gloucester (+7.1%), Oakville (+6.7%), Niagara Falls (+6.6%), and Greater Sudbury (+6.0%).
In B.C., rent growth was led by Richmond, with a 6.9% increase.
Cote-Saint-Luc continued to lead rent declines in Canada with a 20.3% annual decrease in March,
Other cities posting steep annual rent declines for apartments of more than 7% included Langley (-12.9%), Airdrie (-9.6%), North Vancouver (-8.1%), Ajax (-7.8%), Kingston (-7.7%), and Richmond Hill (-7.6%).

Working With a Real Estate Agent in Canada to Find Housing

The Long-Term Canadian Rental Outlook for Newcomers

Falling prices and rental demand are creating improved rental opportunities for newcomers to Canada, particularly those who wish to live in the pricey GTA and GVA cities.

Additionally, there is considerable uncertainty about the impact of the trade war with the U.S. on rent and homebuying prices in Canada moving forward.

Urbanation President Shaun Hildebrand said, "Rents in Canada are likely to continue facing downward pressure in the near term due to the expected negative economic impact and job losses caused by the trade conflict with the U.S.”

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.

According to Rentsync's Daniel Aizikov, rental demand in Canada has fallen 38.8% since March 2023.

Canada's record immigration rates are a thing of the past. Over the past two quarters, the number of net non-permanent residents dropped by 96%, according to Aizikov, which has significantly reduced the number of new renters entering the market.

Cities in British Columbia have some of the nation's most expensive rents

"This sharp drop in new entrants," said Aizikov, "is a major reason why rental demand has fallen so steeply over the last two years. While seasonal growth is expected to continue in the short term, a full recovery to pre-2024 demand levels is unlikely."

Aizikov also points out that many renters now prioritize affordability. This means renters are showing greater flexibility and a willingness to relocate in search of greater rental opportunities.

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

Rent Report Summary for Newcomers to Canada:

Inflation in Canada is currently at 2.3%, and interest rates, which have remained at 2.75% since a pause in April, are expected to continue falling. Canadian rent prices are expected to continue declining nationally, particularly in major cities and regions such as Vancouver and Toronto. However, rent prices are still rising in some mid-sized and smaller centres, specifically in western Canada and the Maritimes.

The search for affordability will drive both domestic and newcomer renters in the months ahead as rental costs remain far and away their primary 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 ongoing trade war with the U.S., as these factors impact rental housing to varying degrees.

Canada will have a new government after the April 28 election. The impact of this and ongoing U.S. tariffs on the Canadian economy and rental asking prices is uncertain for the remainder of 2025.

It is more essential than ever that newcomers and international students understand the regional differences in rental prices and 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 conduct thorough research on their city before arriving in Canada.

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

Newcomers should look for landlords offering incentives

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 property.
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

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.