The Internet Listing Services (ILS) market is undergoing significant transformation, driven by evolving renter behaviors, economic pressures, and advancements in digital marketing. Multifamily professionals must move beyond simply maintaining a presence on ILS platforms and focus on leveraging them strategically to maximize efficiency and lead conversion.
Key Trends Shaping the ILS Market
The Decline of Classifieds and the Dominance of ILS
Online classified sites are losing ground, with rental search traffic continuing to shift toward ILS platforms. Over the past two years, estimated organic search traffic for key classified sites in Ontario has dropped to just 6%, while ILS’ command 64% of that market.
💡 Takeaway: Renters want a better search experience, verified listings, and enhanced usability—areas where ILS platforms outperform classifieds.
Rental Rates Are Impacting Search Demand
Higher rental rates are leading to decreased renter mobility. With fewer people moving, search demand is suffering:
- 2-bedroom rental rates have increased by 18%*
- Turnover rates have dropped by 28%*
- Overall search demand has declined by 44%*
For property marketers, this means a more competitive landscape with fewer active searchers.
💡 Takeaway: Simply listing on an ILS isn’t enough. Marketers must optimize visibility and conversion strategies to capture a shrinking renter audience.
Consolidation is Reshaping the Market
The ILS industry is mirroring trends seen in travel booking and dating apps—consolidation is leading to a smaller number of dominant players. In Canada, the Rentals.ca Infinity Network now represents 46% of all ILS search traffic, far surpassing other platforms like Realtor.ca, CoStar Network, Zillow and Kijiji combined.
💡 Takeaway: Prioritize high-performing platforms over spreading budgets too thin across multiple ILS options.
The Growing Risk of Rental Scams
Security concerns are rising among renters, with scam listings becoming more prevalent. According to the Better Business Bureau, there has been a 31% increase in rental scams since 2019, and over 40% of renters have encountered at least one fraudulent listing.
💡 Takeaway: Verified listings and enhanced security aren’t just nice-to-haves—they’re essential for trust and conversion.
The Role of Data in Future ILS Success
As ILS platforms collect more granular data, rental professionals can gain deeper insights into lead quality, conversion rates, and price-value alignment to make more informed decisions.
For example, a 2-bedroom unit in Toronto listed at $2,950 is likely to have a lower conversion rate than a similar unit priced at $2,199 based on pricing alone. However, other factors can impact conversion rates like the listing content, high-quality visuals, and how well the price aligns with market demand.
💡 Takeaway: Analyzing lead quality, conversion rates, and pricing strategies will enable rental professionals to refine pricing strategies and improve listing performance.
Maximizing ILS Effectiveness in 2025
✅ Invest in Promoted Listings
Visibility matters. While organic reach is valuable, promoted listings can significantly increase exposure and lead volume.
✅ Balance Lead Generation and Cost Efficiency
It’s critical to monitor diminishing returns on ad spend. Increasing marketing investment does not always yield proportional growth. Identifying plateau points helps optimize budgets.
✅ Leverage Multi-Channel Integration
ILS is just one piece of the marketing puzzle. Seamless booking, online applications, and credit check integrations help turn interest into leases more efficiently.
Looking Ahead: The Future of ILS
ILS platforms are evolving to offer more than just listings. New features such as property-level impressions tracking, enhanced lead scoring, and floorplan navigator integrations are setting the stage for a more intelligent, data-driven approach to multifamily marketing.
Staying ahead means adapting to these trends, using data strategically, and focusing on high-quality lead generation. The future belongs to rental professionals who use data strategically.
Did you find this information helpful? This article has summarized our recent Rentsync Roadshow session: “ILS Trends Uncovered” - watch the full session recording for more detailed information and access additional Roadshow content in our Rentsync Roadshow Replay Hub.
*Data Sources: Google Trends, CMHC & Rentals.ca
