The Shifting Rental Market in Canada: What Renters Need to Know

In Canada, roughly two-thirds of home occupants own their homes, while the rest are renting. This creates a strong demand for rental properties, but the rental market is much more complex than it first appears. While larger cities like Vancouver and Toronto have long been known for their expensive rents, a closer look reveals that rental trends are shifting across the country—and even smaller cities are feeling the impact.

Rising Rents in Canada’s Largest Cities

Vancouver and Toronto continue to be the most expensive cities for renters. As of October 2024, the average rent for a one-bedroom apartment in Vancouver is nearly $2,650 per month, with a two-bedroom unit averaging just under $3,500. In Toronto, the prices aren’t much better, with one-bedroom units renting for just over $2,400, and two-bedroom apartments averaging $3,100 per month.

Rental Prices in Smaller Cities Are Rising Too

What’s more surprising is that rental markets in smaller cities across Canada, like Saskatoon, Regina, and Edmonton, are seeing significant price hikes as well. In some cases, rents have spiked by more than 20% since 2023. While these cities are still more affordable than Vancouver or Toronto, the trend is clear—renting is becoming more expensive everywhere.

Why Are Rental Prices Increasing?

Several factors are contributing to the rise in rental prices across Canada. According to Shaun Cathcart, Senior Economist with the Canadian Real Estate Association (CREA), one key reason for the rent increases is the high cost of buying a home. With home prices continuing to climb, many would-be buyers are being pushed out of the market and are turning to rentals instead. In smaller cities where homes are more affordable, rental demand is growing, which in turn drives up rental prices.

Vancouver and Toronto: Cooling Off?

Interestingly, rental prices in Vancouver and Toronto may be starting to cool off. With rents already at their highest limits, many renters are finding it less attractive to pay inflated prices for small apartments. In some cases, renters are turning away from smaller, more expensive condos and moving toward more affordable markets in smaller cities. This trend could help stabilize prices in these large urban centers.

What’s Next for Renters?

Experts predict that rental prices will continue to be closely tied to the housing market. If interest rates decrease and home buying becomes more affordable again, fewer Canadians may choose to rent, leading to lower demand for rental properties. Additionally, changes in immigration policies, such as a 10% decrease in international students coming to Canada in 2025, could further impact rental demand and help cool off the market.

For renters in Burlington, the trends suggest that while local rents may not be as high as those in Vancouver or Toronto, they could still face price hikes as demand for rental properties continues to grow. It’s important to stay informed about the market and plan accordingly, whether you’re renting or considering buying a home in the area.

Conclusion

The rental market in Canada is undergoing significant changes. While cities like Vancouver and Toronto remain the most expensive, smaller cities like Burlington may also experience rising rents as more Canadians opt for rental properties due to high home prices. Whether you’re a current renter or thinking about entering the market, understanding these trends can help you make better decisions about where to live and what to expect in the coming months.

Looking to List or Lease in Ontario?

Reach out anytime!