After a period of relative stability in May, June saw rental demand retreat, wiping out 82% of the previous month’s gains. Nationally, active prospects fell -3.1% month-over-month, while active properties declined by a more modest -1.2%. Despite this short-term setback, rental demand is still trending upward overall, with active prospects rising +12.6% since January, signalling a slow but persistent recovery.
Year-over-year comparisons continue to show declines, but the gap is narrowing. Active prospects were down -20.7% compared to June 2024, an improvement from January’s -26.2% annual drop. This easing suggests that the worst of the demand slump may be behind us. Still, deeper structural issues, like price fatigue, affordability constraints, and a lack of new renter activity, continue to hold back full-scale recovery.
Although the renter pool remains smaller, those still in-market are more motivated. Leads per prospect rose +3.0% month-over-month and a substantial +42.5% year-over-year. This uptick in lead activity suggests that active renters are casting a wider net, submitting inquiries across more listings as they search for viable options. While this increases competition among properties, it also improves listing visibility for those well-positioned in terms of price, availability, or location.
National Stats (Month-over-Month):
National Stats (Year-over-Year):
By Market Segment (Active Prospects, MoM):
June’s pullback reinforces the reality that rental demand is recovering, just not in a straight line. Volatility remains the norm, but the broader trend since January points to growing renter engagement. If affordability pressures ease and new supply reaches the market, activity could stabilize further through the summer. That said, without meaningful improvements in renter confidence and cost-of-living conditions, substantial momentum is unlikely to build in the short term. For now, expect a market that’s slowly rebalancing, one lead at a time.
Demand scores declined in June by -1.8% across our top 40 markets. Similarly, both active prospects and available properties declined in June -2.9% and -1.0% respectively. The decline in active prospects removes much of the growth experienced in May; however, overall prospect counts still remain up from January and suggest that in between the constant push and pull of demand, the overall trajectory is that of gradual recovery. The top 10 markets in demand fared only slightly better with demand scores up +0.5% due to the imbalance between active prospects down by -1.2%, and active properties -1.7% which resulted in average prospects per property growing by +0.5% monthly.
Month-over-month (M/M): Within our top 40 markets, demand scores were down -1.8% in June 2025 compared with May 2025. June represents the third month of declining rental demand in 2025 with each month of demand separated by a month of growth.
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 -18.9%, available properties are down -0.9%, and active prospects per property are down -18.2% across our top 40 markets in demand. Overall demand scores are, however, increasing +12.7% yearly due to the change in score divisor, which has effectively resulted in higher relative scores in 2025 relative to 2024.
Year-over-year (Y/Y): Within our top 40 markets, demand scores are up +12.7% in June 2025 compared with June 2024. Although demand scores show an upward trend in annual comparisons, this does not paint the full picture of rental demand. With fewer overall active renters on market, actual demand is down year-over-year.
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 down -2.4% month-over-month, unique prospects are down -3.3%, and properties are down -0.9%.
Primary markets saw a relatively minor adjustment in rental demand in June, with the second-lowest relative decline in active prospects (Tertiary markets saw the smallest decline). Although prospects are down from last month, they remain up +1.9% from April, suggesting a long-term trend of rebounding rental demand. In recent months a majority of the markets showing growth were either suburban communities to larger urban centres or more affordable primary markets, however, in June, we see that larger urban centres make up a majority of the rebounding markets, including Vancouver, Toronto, Ottawa, and North York all of which have recorded growing prospect counts averaging +4.8% month-over-month. Although rental demand has not rebounded to levels near to those seen over the past 2 years, there are clear signs of gradual recovery, which are positive signs for housing providers in primary markets.
*Year-over-year demand scores are up +16.4%, prospects are down -18.8%, and properties are down -3.9%.
Year-over-year comparisons show a dramatic increase in demand scores +16.4% however, this is diminished by the -18.8% decline in active prospects experienced over the same period. Despite this stark decline, each passing month sees the annual decline shrink, going from -28.5% in January to -18.8% in June; suggesting that this annual comparison will continue to shrink in the coming months as longer-term trends continue to stabilize and show a greater flattening of rental demand trends. In June, only North York, Calgary, and Vancouver saw annual growth in active prospects up +12.2%, +5.1%, and +0.3% respectively.
*Secondary markets demand scores are down -0.5% month-over-month, unique prospects are down -3.5%, and properties are down -3.0%.
Secondary markets maintain their position as the lowest performing market segment, and in June experienced the largest average monthly declines in active prospects -3.5% of all market segments. Not all markets are susceptible to this decline, including Kitchener, London, and Surrey, all of which saw significant growth in active prospects, while the remaining markets all saw more dramatic declines in monthly prospect counts.
*Overall, year-over-year demand scores are up +0.1% year-over-year, with prospects down by -21.5%, and properties are up by +8.0%.
Secondary markets show the greatest relative annual decline in overall rental demand of all market segments with the highest decline in active prospects, and a substantial increase in available properties. This inverse movement in supply and relative demand have resulted in average prospects per property declining by -27.3% on average, which is the largest decline of all market segments when not accounting for the top 10 markets in demand, which declined by an average of -33.6%. Hamilton was the sole market to see annual growth in active prospects +2.3%, while the remaining markets all posted annual declines, averaging -28.2%.
*Demand scores in tertiary markets increased by +2.9% month-over-month, unique prospects are down -0.2%, and available properties are down -3.0%.
Tertiary markets maintain their lead and outperform all other market segments with respect to monthly shifts in rental demand. Although not all tertiary markets in our rankings are showing growth or relative stability, they do however balance each other out with half the markets in our rankings posing growth in prospect counts, with the remaining reporting similar rates of declines which results in a relatively flat monthly shift of -0.2% in active prospect counts.
*Overall, year-over-year demand scores are up by +22.3, unique prospects are down by -16.2%, and available properties are down -5.6%.
Tertiary markets saw the lowest relative annual declines in active prospects -16.2% of all market segments, with the exception of the top 10 markets in our demand rankings, which saw an average prospect decline of -6.5% year-over-year. Several tertiary markets in our rankings are reporting annual growth in active prospects, including East York, Cambridge, Sudbury, and St. Catharines. With the remaining markets all showing varied levels of annual decline. The general trend of annual growth experienced by these markets is a positive indicator of the long-term rebound of rental demand.
June’s downturn serves as another example of the stop-and-go momentum defining Canada’s rental market in 2025. After May’s gains, national demand declined -3.1% and reversed most of the previous month’s progress, underscoring how volatility continues to shape leasing activity. Despite these fluctuations, the broader trend remains cautiously upward: active prospects have grown +12.6% year-to-date, and lead activity is rising.
Although the total number of active prospects is still well below 2023 levels, down -20.7% nationally and -18.9% across the top 40 markets, the gap is narrowing. In January, year-over-year declines exceeded -26%, suggesting that a long-term recovery is unfolding, albeit slowly. Importantly, those still in-market are increasingly engaged: leads per prospect rose +3% in June and +42.5% compared to last year. This indicates a more motivated renter pool willing to explore more options, which increases competition among properties but also creates more opportunities for exposure.
Still, systemic challenges remain. Affordability constraints, limited supply diversity, and slower immigration continue to weigh on the market’s ability to rebound at scale. While some regions may recover faster, particularly those offering affordability, product variety, or strong employment opportunities, others may lag without broader structural change.
What’s Next for Canadian Rental Demand?
With half the year behind us, the market appears to be stabilizing, just not steadily. Fluctuations in monthly activity are likely to continue, even as long-term indicators improve. Renter engagement offers cautious optimism, but without resolution of the underlying barriers to demand, significant growth will remain limited. Properties that adapt early to shifting renter expectations will be best positioned to benefit from seasonal traffic and gradual market recovery.
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: Calgary, AB received a demand score of 5.9 this month, versus 5.8 last month. Calgary experienced a 0.1-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 Calgary, AB increased by 0.4% in June 2025 versus May 2025. The year-over-year demand score in Calgary increased by 1.6 points from June 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, Calgary, AB maintained its top position in our Top Canadian Cities in Demand Rankings
*This report provides month-over-month rental listing data for June 2025 versus May 2025 and a year-over-year comparison from June 2025 versus June 2024. It also outlines the month-over-month and year-over-year trends in primary, secondary, and tertiary markets.