Shifting Trends, Big Changes: A Look at Canada’s Rental Market

The Canadian rental market is going through some big changes. From shifting renter demographics to new government policies and regional trends, there’s a lot for rental professionals and investors to keep up with. At the recent Rentsync Roadshow in Toronto, Shaun Hildebrand of Urbanation and David Aizikov of Rentsync broke it down, sharing key stats and expert insights on what’s happening now—and what’s coming next.

We’ve taken their session insights and turned them into a digestible summary.

National Trends: A Complex Market

Canada’s rental market is experiencing notable shifts.

Rents Decline for the First Time Since COVID: After years of steady increases, rents in Canada are starting to decrease. Notably, condo rents declined by 3.8% in October 2024, while purpose-built rental (PBR) rents increased in the same month by 1.7%, highlighting differences in demand across housing types.

Record-High Apartment Completions: Apartment completions reached a record high in the first half of 2024, with Toronto leading the way. Purpose-built rental completions in the city are projected to peak in 2025 before tapering off. This influx of supply has helped ease some upward pressure on rents.

Moderating Demand: Government measures to reduce immigration and temporary residents could lead to a 0.4% population decline (equivalent to 165,000 people) over the next two years, which may dampen rental demand.

While rents are cooling in some areas and new units are coming online, affordability challenges aren’t going away. Larger units—particularly three-bedrooms—are seeing more demand as renters look for cost-effective options. \

Regional Insights: Diverging Market Conditions

Canada’s rental market dynamics vary widely across our provinces and cities.

Ontario and BC See Rent Declines: Rents in these the most expensive metro markets have started to soften. Studio and one-bedroom units in Toronto have been impacted the most by declining more than other unit types, reflecting changing renter preferences and affordability challenges.

Three-Bedroom Units Outperforming: Three-bedroom rentals are gaining popularity across Canada, driven by families and co-living arrangements. Even though rents have not declined for these units, they're still attracting a growing proportion of renters who see them as a budget-friendly method of reducing the individual costs of renting.

Affordable Markets Driving Growth: Smaller cities and suburban areas are seeing the fastest rent growth right now. With affordability top-of-mind, more renters are looking beyond major urban hubs for places that offer both value and convenience. These markets are quickly becoming go-to alternatives for those priced out of big-city living.

Toronto is a prime example of these national trends in action. Condo rents in the city have cooled after skyrocketing in 2022 and 2023, and while purpose-built rental (PBR) units remain more affordable than comparable condos, demand has softened, keeping market rents flat year-over-year. 

In-Depth Insights for Decision Makers
Adapt to Evolving Preferences

The market has seen a big shift in supply—listings for studios are up 56%, and one-bedrooms have grown by 17%, while two-bedroom and three-bedroom availability has dropped by 21%. These percentage values are reflective of a relative change in distribution year over year. This is partly influenced by renters in certain unit types, like two-bedrooms, staying put longer. However, this trend hasn’t had the same impact on three-bedroom units, which continue to see strong demand.

Renters are prioritizing affordability more than ever, gravitating toward units with included utilities, energy-efficient appliances, and convenient access to transit to help manage costs.

Leverage Data for Strategic Decisions

Toronto’s rental market highlights the need for a data-driven approach. Affordable and multi-bedroom units are in high demand, while single-occupancy rentals have dipped by 4% year-over-year.

Keeping up with real-time insights—like renter interest at the unit level and shifting pricing trends—can help rental professionals fine-tune their leasing strategies and stay in sync with market demand.

Expand Beyond Major Markets

Smaller, more affordable cities outside major urban centres are seeing the fastest growth. For investors and developers this opens up opportunities to expand into markets where renters are looking for better value.

Monitor Policy Impacts

Shifting immigration policies and housing regulations will have a big impact on rental demand. Staying ahead of these changes will be key for rental marketers and leasing agents looking to adapt their strategies and keep occupancy rates strong.

Looking Ahead

The Canadian rental market is shifting fast, and navigating it takes a smart, adaptable approach. Rental professionals who stay ahead of demographic changes, use data to guide decisions, and align with renter priorities will be in the best position to succeed.

With record-high completions, shifting demand, and ongoing affordability challenges, being flexible and strategic is more important than ever. As discussed at the Rentsync Roadshow, understanding how these factors intersect can help industry professionals tackle challenges and seize new opportunities in Canada’s evolving rental landscape.

Want to watch the Rentsync Roadshow session with Shaun Hildebrand and David Aizikov in its entirety? 
Click here to gain access to our Rentsync Roadshow Replay Hub to watch recorded sessions from our Toronto stop.