After June’s setback, July brought a rebound in rental demand. Nationally, active prospects rose 10.2% month-over-month, recovering last month’s losses and pushing demand to an 11-month high. While the stop-and-go pace continues to slow leasing activity, prospect counts are now up 24.1% year-to-date, a steady climb that signals gradual market recovery.
Annual comparisons show the demand gap is shrinking. Active prospects were down 18.6% year-over-year in July, an improvement from January’s 26.2% drop. This relative recovery is partly tied to softer demand at the end of 2024, alongside gradual gains this year. Still, a full return to pre-2024 levels remains unlikely in the near term. Price fatigue is keeping many current residents in place, while fewer new arrivals to Canada are limiting the pool of potential renters.
Structural challenges remain, but renter activity is showing signs of strength. Average leads per prospect climbed 39.9% year-over-year, indicating that those still searching are submitting more inquiries and exploring a wider range of listings. This increased engagement can boost visibility for competitively priced, well-located properties, even in a market where overall demand recovery is slow.
National Stats (Month-over-Month):
National Stats (Year-over-Year):
By Market Segment (Active Prospects, MoM):
July’s upswing suggests that while volatility is still shaping the market, demand is gradually regaining ground. Seasonal activity and pockets of price adjustment could help sustain momentum through late summer. However, without meaningful shifts in affordability or an increase in new renter inflows, growth is likely to remain measured. Expect a market that continues to recover in increments, with competitive pricing and strong online presence playing a critical role in capturing active demand.
Demand scores increased by 8.1% in July across our top 40 markets in demand. Active prospects grew by 10.3%, while active properties increased by 2.0%. This substantial increase is more typical of July as the most active leasing month of the year, and offers some relief to properties struggling to lease up amidst a broader market slowdown. The top 10 markets in demand fared slightly worse with a lower relative rebounding of active prospects of 9.5%, while available properties grew by 3.1%. The stop-and-go momentum of rental demand has continued into July, following a June slowdown. Suggesting that July will likely be the most active month by rental activity for the 2025 summer leasing season.
Month-over-month (M/M): Within our top 40 markets, demand scores were up 8.1% in July 2025 compared with June 2025. July experienced the fourth rebound of the year amidst the phenomenon of alternating growth and decline.
Annual demand comparisons show a gradually shrinking gap between the previous year's highs and this year's slower rental market. Active prospects are down (-16.9%), available properties are up 1.5%, and active prospects per property are down (-18.1%) across our top 40 markets in demand. Overall demand scores are, however, with annual growth of 12.9% in July, up from 12.7% in June, and suggesting that the longer-term trend is one of recovery.
Year-over-year (Y/Y): Within our top 40 markets, demand scores are up +12.9% in July 2025 compared with July 2024. While active prospects remain down Year-over-year, overall market conditions are showing signs of recovery over the longer term.
To provide a more detailed analysis of the rental demand in specific markets across Canada, we have segmented our market data into 3 key market segments.
Examining these market segments individually offers a deeper understanding of demand patterns within larger population centres, and allows us to identify trends across markets.
*Overall demand scores are up 8.0% month-over-month, unique prospects are up 9.3%, and properties are up 1.2%.
Primary markets saw the second-highest rate of demand growth in July of all market segments, with active prospects up 9.3% on average. This recovery was driven by growing prospect counts in several major Ontario communities, including Mississauga 30%, North York 23.2%, and Ottawa 16.3%. Except for Vancouver, which experienced declining prospect counts in July (-7.3%), the remaining markets in our rankings all showed positive growth and recovery. Although the recovery of rental demand remains unsteady with the monthly push and pull of prospect counts, the general trend of growth is a positive indicator in the long-term health and recovery of larger urban rental markets.
*Year-over-year demand scores are up +14.5%, prospects are down -18.0%, and properties are down -1.4%.
While demand scores show dramatic growth and recovery, prospect counts remain down year-over-year, thus signalling a disconnect between the shorter-term recovery and longer-term decline being felt across the country. Not all markets in our rankings are experiencing this longer-term decline equally, with North York, Calgary, and Scarborough all reporting annual growth in prospect counts of 15.8%, 8.1%, and 1.3% respectively. The remaining markets all posted annual declines with an overall average of (-22.1%) year-over-year. These figures are not all negative, with the long-term trend indicating a gradual recovery across the range of primary markets, suggesting that we may see an annual rebound as early as September.
*Secondary markets demand scores are up 13.1% month-over-month, unique prospects are up 14.7%, and properties are up 1.4%.
Secondary markets blew the national average out of the water and outperformed every other market segment being tracked. The above-average growth in active prospects and a lower-than-average recovery of active properties resulted in a 13.1% swing in average prospects per property. This results in improved conditions for properties and a greater demand for rentals as a whole in these communities. The recovery of secondary markets in July ranged from 11.5% to 27.5%, with Brampton being the only exception and posting a monthly decline of (-3.1%) in active prospects, while also reporting the highest growth in property counts of all secondary markets.
*Overall, year-over-year demand scores are up +7.7% year-over-year, with prospects down by -17.3%, and properties are up by +5.8%.
Secondary markets show the second largest annual declines in rental demand, just behind primary markets, which saw a (-18%) decline in prospect counts. Although the decline in prospect counts may be lower than in primary markets, secondary markets remain harder hit due to the increase in active properties. This increase, coupled with the decline in prospect counts, resulted in a substantial decline in average prospects per property (-21.8%), which is the largest relative decline seen across all market segments.
*Demand scores in tertiary markets increased by +3.5% month-over-month, unique prospects are up +8.8%, and available properties are up +5.1%.
Tertiary markets underperformed in July relative to the broader country and larger market segments, and while active prospects increased, the concurrent growth of active properties resulted in a more muted response, with average prospects per property up 3.5% in July, and this is substantially lower than the average of 8.1% across the top 40 markets in demand. Although the recovery of tertiary markets has been slower than other market segments, every market in our tertiary market rankings is posting growth, with Sudbury, Burlington, Burnaby, and Saskatoon being the standouts with above-average growth in prospect counts of 21.2%, 13.6%, 13.6%, and 11.2% respectively.
*Overall, year-over-year demand scores are up by +22.8, unique prospects are down by -10.1%, and available properties are up +0.8%.
Tertiary markets continue to post the lowest annual declines in prospect counts relative to other market segments, except for the top 10 markets in demand, which showed a (-6.5%) decline year-over-year. While the average across the tertiary markets in our rankings shows a general trend of decline (albeit lessening with each passing month), there are a few standout markets which have entered into a phase of growth, including East York, Guelph, and Cambridge. Based on the current trajectory of municipalities in our tertiary market rankings, a complete rebound of annual declines is likely going to be delayed relative to larger primary and secondary markets, which are likely to recover sooner.
July continued the uneven cadence of recovery that has shaped the year so far. While this push-and-pull has slowed momentum, we’re still seeing a sustained upward trend in rental demand. National prospect counts rose 10.2% month over month, offsetting June’s decline and pushing active prospects to an 11-month high. Since January, active prospects are up 24.1%, and year-over-year declines have narrowed from -26.2% in January to -18.6% in July, a clear sign that a slow but steady recovery is underway.
The increase in activity isn’t being driven solely by a growing renter pool but also by a more engaged one. Average leads per prospect climbed 38.9% year over year, showing that active renters are broadening their searches and submitting more inquiries to secure a new home. While this creates stronger competition for a still-limited pool of prospects, it also increases visibility, which is a key advantage for properties that can align with evolving renter priorities and motivations.
Despite the progress, long-term challenges persist. Affordability pressures, slowing immigration, and a fixed renter population continue to limit the market’s potential to return to pre-2024 demand levels. These structural factors mean that, while short-term trends are encouraging, the recovery will remain gradual and drawn out.
Markets that offer a mix of strong appeal, relative affordability, supply diversity, and desirable amenities are best positioned to capture more active prospects in the months ahead. On the supply side, properties that refine their marketing strategies, highlight competitive advantages, and respond quickly to changing renter needs will be best placed to convert interest into leases.
What’s Next for Canadian Rental Demand?
The remainder of summer is likely to bring measured but sustained gains, supported by seasonal activity and a motivated renter base. However, without relief on affordability or an increase in new renter inflows, growth will remain incremental. Properties that pair competitive pricing with strong online visibility and clear value will be best positioned to take advantage of the current wave of engagement as the market continues its slow but steady climb.
To present this data, Rentsync has determined three key calculations for each area of the report, They are as follows:
Demand Score: Our demand score is rated out of 10 (with 10 being the highest score a city can receive), and is calculated based on unique leads per property, per city, and compared against benchmark data.
For Example: Burnaby, BC received a demand score of 6.5 this month, versus 5.5 last month. Burnaby experienced a 1.0-point increase in its demand score.
Demand Percentage (% +/-): This is determined according to the year-over-year (YOY) or month-over-month (MOM) increase or decrease in unique leads per property.
For Example: The month-over-month demand scores in Burnaby, BC, increased by 18% in July 2025 versus June 2025. The year-over-year demand score in Burnaby decreased by 0.2 points from July 2024.
Position: The position is determined by unique leads per property, with cities that have at least *20 properties or more. The position will vary depending on demand.
For Example: This month, Burnaby, BC gained one spot to achieve the top position in our Top Canadian Cities in Demand Rankings.
*This report provides month-over-month rental listing data for July 2025 versus June 2025 and a year-over-year comparison from July 2025 versus July 2024. It also outlines the month-over-month and year-over-year trends in primary, secondary, and tertiary markets.