Rentsync National Rental Demand Report: February 2025

Demand Trends for the Canadian Market

Closing out the first month of 2025 the Canadian rental market saw relief through the form of surging rental demand throughout the country. While a growing population of active renters is a positive indicator of ongoing rental demand it remains too early to determine if this will be an ongoing trend, or if this is simply reflective of conventional seasonality. This would normally see a decline in demand through December, followed by a one-month rebounding of rental demand in January, resulting in a multi-month high and making up for much of the losses experienced throughout the winter months. 

Nationally January saw a +28.3% increase in active prospects and a +4.1% increase in properties. The influx of active prospects aligns with last year's January rebound and has led to a 4-month high. The top 10 markets fared similarly to the national average with prospects up +25.74% monthly while property counts were relatively flat up +0.6% monthly. Year-over-year comparisons show depressed rental activity with the top 10 markets down -20.2% annually in active prospects.

Secondary markets experienced the greatest overall uplift in rental demand with active prospects up on average +33.2% monthly, with primary markets coming in a close second at +27.2% monthly, and Tertiary last at -21.9%. This ranking of market segments does not paint the full picture of rental demand trends as individual markets within each segment which have not experienced a rebounding of rental demand skew the overall stats and thus obscure the city-level trends currently being experienced.

In the following sections, we identify notable changes in rental demand, highlight market-specific trends, and discuss what the coming months may look like for the rental demand in Canada.

Top Canadian Cities in Demand

Notable Changes in Demand Over the Past Month

Demand scores improved in the first month of the year and represent the first month of growth over the past 6 months. Across our top 40 markets, demand scores grew by +23.3% monthly, prospect counts increased by +27.2%, and active properties increased by +3.1%. The top 10 markets saw a more muted average, with overall demand scores up +25% while prospect counts grew by +25.7%, and properties were relatively flat at +0.6% monthly. The growth in both active prospects and properties is reflective of conventional seasonality with January typically showing an outbound resurgence of rental demand with the result typically making up for much of the losses in rental demand experienced since September. The rental market, alongside the broader country, returns to normalcy in January once the holidays end and renters across the country return to their housing searches.

Month-Over-Month (M/M)

• Primary: Demand scores are up +23.4%
• Secondary: Demand scores are up +33.2%
• Tertiary: Demand scores are up +15.0%

Month-over-month (M/M): Within our top markets, demand scores were up +23.3% in January 2025 compared with December 2024. This rebounding is representative of typical December demand trends.

Notable Changes in Demand Over the Past Year

Annual demand comparisons show a gradually lessening trend of declining rental demand on an annual basis. This shrinking decline is likely due to the rebounding currently experienced in Canada’s rental markets however, while the market is gradually improving annual comparisons will likely continue to show year-over-year declines into the foreseeable future. Across our top 40 markets active prospects are down -26.5% year-over-year, properties are down -2.6%. Across the top 10 markets in rental demand the decline of active prospects is lower at -20.2%, while active properties are down -27.2% resulting in the average prospect per property being +9.6% higher than this time last year.

Year-Over-Year (Y/Y)

• Primary: Demand scores are up +6.7%
• Secondary: Demand scores are down -11.4%
• Tertiary: Demand scores are up +18.2%

Year-over-year (Y/Y): Within our top 40 markets demand scores are up +4.0% in January 2025 compared with January 2024. Active prospects are down -26.5% year-over-year, while properties are down -2.6%.

An Analysis of Key Canadian Markets

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.

• Primary (Populations Over 600K)
• Secondary (Populations Between 235-600K)
• Tertiary (Populations Between 100-235)

Examining these market segments individually offers a deeper understanding of demand patterns within larger population centres, and allows us to identify trends across markets. 

Primary Markets (Populations >600k)

Primary Market Drill Down (M/M): October 2024 vs. September 2024

Notable Changes in Primary Markets Over The Past Month

*Overall demand scores are up +23.4% month-over-month, unique prospects are up +27.2%, and properties are up +3.1%.

Primary markets saw the second-highest overall average increase in active prospects in January in line with the broader country as it experienced growing rental demand. Montreal, Ottawa, Calgary, and Vancouver were standouts this month and experienced substantially above-average growth in active prospects. Amongst the 10 individual markets within our primary market rankings, all but 2 (North York, and Mississauga) saw growth in the number of active prospects with an average monthly increase of +33%. Irrespective of the two markets which continued to show declining prospect counts, This January has experienced a greater relative rebounding when compared to the previous year. While it may be too early to determine whether this above-average growth is reflective of a structural shift in rental demand, it nonetheless is a positive indicator for a return to a healthier rental market with a growing population of renters actively searching for their next home.

Primary Market Drill Down (Y/Y): October 2024 vs. October 2023

Notable Changes in Primary Market Demand Over The Past Year

*Year-over-year demand scores are up 6.7%, prospects are down -28.5%, and properties are down -7.6%.

Primary markets continue to show a trend of moderation with each passing month. Suggesting that while as a whole rental demand remains down year over year, it is not actively in decline and instead flattening with strong monthly gains resulting in a trend suggesting that year-over-year comparisons may show a full rebounding later this year or next. While all 10 markets in our primary market demand rankings show annual declines in prospect counts, Ottawa, Calgary, and Winnipeg all showed significantly below-average declines suggesting greater sustained relative rental demand.

Secondary Markets (Populations ~235-600k)

Secondary Markets Drill Down (M/M): October 2024 vs. September 2024

Notable Changes in Secondary Market Demand Over The Past Month

*Secondary markets demand scores are up +33.2% month-over-month, unique prospects are up +33.2%, and property counts are flat 0.0%.

Secondary markets saw the largest single-month increase in active prospects of all market segments up +33.2%. While all of the markets within our rankings show monthly growth there are a few key standouts which achieved significantly above-average increases most notably Halifax +61.2%, Victoria +42.3%, and Hamilton +39.3%. This shift in rental demand is a positive indicator of ongoing growth in rental activity and an eventual return to a more balanced and healthy rental market.

Secondary Market Drill Down (Y/Y): October 2024 vs. October 2023

Notable Changes in Secondary Market Demand Over the Past Year

*Overall, year-over-year demand scores are down -11.4% year-over-year, with prospects down by -30.3%, and properties are up by +8.4%.

Secondary markets in line with the broader country show continued moderation in annual comparisons with each passing month. However, regardless of this moderation, year-over-year comparisons show a stark difference in overall rental activity showing the shift from an owners or landlords market in the beginning of 2024 to a position squarely in the renters market entering 2025. Of the cities within our secondary market rankings, Hamilton stood out with a marginal -1.6% decline in active prospects suggesting that the surge in rental demand in January 2025 has enabled the market to effectively rebound. Although rental demand is moderating secondary markets remain a more challenging proposition for leasing professionals stabilizing new properties in 2025.

Tertiary Markets (Populations ~100-235k)

Tertiary Markets Drill Down (M/M): October 2024 vs. September 2024

Notable Changes in Tertiary Market Demand Over The Past Month

*Demand scores in tertiary markets increased by +15.0% month-over-month, unique prospects are up 21.9%, and available properties are up +6.0%. 

Tertiary markets continue to show the lowest relative monthly gains in rental demand consistently over the past quarter suggesting that while they continue to rebound, they do so at a lower relative rate when compared to the broader country. All of the cities in our tertiary markets ranking saw growth in their active prospect counts except East York which continued to decline through January. Without East York included, the overall average month-over-month growth in active prospects for the remaining communities is +34% which represents a substantially higher growth rate than the broader national average and that of other market segments.

Tertiary Markets Drill Down (Y/Y): October 2024 vs. October 2023

Notable Changes in Tertiary Demand Over the Past Year

Overall, year-over-year demand scores are up by +18.2%, unique prospects are down by -7.6%, and available properties are up +7.7%. 

While tertiary markets have experienced a decline in active prospects, the influx of active properties suggests tiger market conditions and may have the potential to attract additional renters in the coming months with the potential for greater incentives and more appealing rental opportunities meant to entice new renters into the market. These communities typically represent more affordable rental opportunities relative to larger markets and as such while they may be slower to rebound will likely continue to show steady moderation over time. Among the tertiary markets in our rankings, East York, Cambridge, and Burnaby experienced above-average increases in active prospects.

Conclusion

The Canadian rental market experienced an increase in rental demand in January, with active prospects rising by 28.3% nationally and 27.2% across the top 40 markets. This represents a four-month high and compensates for declines seen during the final and coldest months of 2024. This rise in January aligns with expected seasonality in rental demand and suggests a continuation of Canada’s rental markets returning to typical levels.

The top 10 markets in rental demand followed the national trend with active prospects increasing by 25.7% month-over-month, while active properties saw a slight increase of 0.6% monthly. Secondary markets led the nation in demand growth with an average increase of 33.2% in active prospects, with primary markets close behind at 27.2%. The widespread increase in demand indicates renewed market activity and may suggest a further recovery in 2025.

However, significant recovery is unlikely until the Spring. If Canada’s rental market follows typical seasonality, a decline in rental activity is expected in the short term before a larger rebound in the Spring and Summer months.
Despite the monthly increase in rental demand, year-over-year comparisons indicate a broader cooling of rental activity over the past year, with active prospects down by 26.2% nationally and 20.2% in the top 10 markets. However, the annual decline is slowing each month, suggesting that rental demand may have reached its lowest point and could be gradually stabilizing. Additionally, the top 10 markets have seen a 9.6% increase in the average number of prospects per property, indicating intensifying competition among renters, which could support stronger leasing activity in the coming months.

Looking ahead, the market remains in a transitional period. Whether this transition leads to a significant rebound or continued moderation will soon become clear. Regardless of long-term trends, demand is expected to increase in the coming months, making it important for property marketers and leasing professionals to position themselves effectively to attract high-quality prospects.

Methodology

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 East York, ON received a demand score of 6.1 this month, versus 4.4 last month. East York experienced a 1.7-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 East York, ON  increased by +39% in October 2024 versus September 2024. The year-over-year demand score in East York increased by 2.2  points representing a 54% increase from October 2023.
    
    
• 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, East York, ON maintained the top spot in our Top Canadian Cities in Demand rankings from last month.
    
    *This report provides month-over-month rental listing data for October 2024 versus September 2024 and a year-over-year comparison from October 2024 versus October 2023. It also outlines the month-over-month and year-over-year trends in primary, secondary, and tertiary markets.