Marketing Managers
Demand Trends for the Canadian Market
March brought a noticeable boost to rental demand across Canada, aligning with the return of more traditional seasonal patterns. This suggests the Spring leasing season is already in full swing and is expected to accelerate in April, with active renters growing by +35.2% monthly, as well as the number of listed properties increasing by +4.1%. This led to a sharp +29.9% jump in average prospects per property, signalling a stronger, more competitive rental market.
All market segments felt the impact of this uptick. Tertiary markets saw the biggest lift, up +43.1%, followed closely by the Top 10 markets nationwide, which climbed +42.1%.
Early Signs of a Strong Leasing Season
March often marks the beginning of the rental market’s busiest period — and this year appears to follow that trend. Despite a sluggish start to 2025, with unsteady movement in early months, March’s rebound suggests that stronger rental activity will carry through into the summer. This will come as welcome news for properties still working to fill vacant suites.
Long-Term Demand Still Lags Behind
That said, year-over-year comparisons tell a more cautious story. Active prospects are down -22.3% nationally compared to March 2024. And looking back even further, rental demand has declined -38.8% since March 2023. While March’s numbers show short-term growth, broader trends reveal a long-term drop in active renter activity.
What’s Driving the Decline?
This declining long-term trend is ultimately due to fewer active renters on the market, with many reasons at play.
However, these are two biggest factors behind the longer-term decline:
1. Price exhaustion and insecurity: As rents climb, some renters are holding off on moving. Whether due to affordability or uncertainty, this behaviour reduces turnover, keeps more renters in place longer, and limits the number of new listings and active renters in the market.
2. Fewer new renters entering Canada: Historically, new residents are twice as likely to rent — and until 2024, Canada saw record immigration rates. That’s now shifted. Over the past two quarters, net non-permanent residents dropped by -96%, which has significantly reduced the number of new renters entering the market.
Breaking Down the Numbers
- Nationally, active rental prospects grew by +32.1%, while available properties increased by +3.7%. This shift represents typical seasonality in both direction and rate of growth.
- The top 40 markets saw slightly stronger growth, with active prospects up +35.2%, while the top 10 markets saw a +42.1% increase.
- Tertiary markets (smaller regions) experienced the highest rate of recovery of market segments with active prospects up +43.1% monthly.
What to Expect Next
This sharp drop in new entrants is a major reason why rental demand has fallen so steeply over the last two years. While seasonal growth is expected to continue in the short term, a full recovery to pre-2024 demand levels is unlikely.
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 grew in March by +29.9% across our top 40 markets making up for the losses over the past 7 months and returning to demand levels similar to those at the end of the 2024 summer leasing season. Active properties are up +4.1% monthly across our top 40 markets, and up +4.8% across the top 10 markets in demand. Notably, tertiary markets saw the highest growth across our market segments for active prospects up +43.1%, while secondary markets saw the most growth in active properties +5.1%.
Month-Over-Month (M/M)
- Primary: Demand scores are up +29.5%
- Secondary: Demand scores are up +27.3%
- Tertiary: Demand scores are up +37.8%
Month-over-month (M/M): Within our top markets, demand scores were up +29.9% in March 2025 compared with February 2025. This recovery in rental demand is typical of March rental demand trends, which see a stark increase post-February.
Notable Changes in Demand Over the Past Year
Annual demand comparisons continue to show lower relative rates of rental demand across the country in 2025 however this should not be a negative indicator of the direction rental demand will continue to move. Active prospects across our top 40 markets in demand are down -21.9%, while active properties are down -3.4%. The top 10 markets in demand have fared better with active prospects down -15.0% year over year suggesting that these communities are finding relative stability in a new period of reduced immigration.
Year-Over-Year (Y/Y)
- Primary: Demand scores are up +14.1%
- Secondary: Demand scores are down -6.1%
- Tertiary: Demand scores are up +23.2%
Year-over-year (Y/Y): Within our top 40 markets demand scores are up +11.4% in March 2025 compared with March 2024. Active prospects are down -21.9% year-over-year, while properties are down -3.4%.
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): Mar 2025 vs. Feb 2025
Notable Changes in Primary Markets Over The Past Month
*Overall demand scores are up +29.5% month-over-month, unique prospects are up +34.2%, and properties are up +3.6%.
Primary markets saw a strong recovery in active renters in March. This resurgence in renters on market is in line with the broader country and suggests strong potential for continued recovery into the Spring and Summer months. When looking at markets individually we see that while all Primary markets in our rankings saw growth in active prospects, the rebounding ranged from +25.2% in Edmonton on the low end, and +58.4% in Mississauga on the upper end. This strong recovery in March is a positive indicator of continued rental demand in primary markets as we move more squarely into the Spring months.
Primary Market Drill Down (Y/Y): Mar 2025 vs. Mar 2024
Notable Changes in Primary Market Demand Over The Past Year
*Year-over-year demand scores are up +14.1%, prospects are down -24.0%, and properties are down -8.3%.
While year-over-year comparisons continue to show lower relative rates of active renters, this decline continues to shrink and suggests rental demand in primary markets is continuing to stabilize. Primary markets are unlikely to return to the highs of 2023 due to fewer new renters entering the market, however, with demand having been suppressed over the past 2 years we are likely to see a stronger rebounding in 2025 with more renters actively moving allowing for more turnover and as a result more variety for active renters.
Secondary Markets (Populations ~235-600k)
Secondary Markets Drill Down (M/M): Mar 2025 vs. Feb 2025
Notable Changes in Secondary Market Demand Over The Past Month
*Secondary markets demand scores are up +27.3% month-over-month, unique prospects are up +33.8%, and property counts are up 5.1%.
Secondary markets in line with the broader country saw a strong recovery in active renters. Amongst the secondary markets being tracked London and Windsor saw the lowest relative monthly growth +18.7% and +21.8% respectively. When not accounting for these markets the average monthly growth amongst the remaining cities is +38.3%. Halifax saw the single highest relative increase in active prospects up +59.4%. Secondary markets are likely to continue showing strong growth throughout the spring as they maintain strong market fundamentals and offer greater relative affordability to some of their proximate primary market counterparts.
Secondary Market Drill Down (Y/Y): Mar 2025 vs. Mar 2024
Notable Changes in Secondary Market Demand Over the Past Year
*Overall, year-over-year demand scores are down -6.1% year-over-year, with prospects down by -23.3%, and properties are up by +12.5%.
Secondary markets likely offer the most opportunities for prospective renters of all market segments due to the divergent movement of active prospects and properties. With fewer renters on market, and a growing supply of properties, secondary markets lean more heavily in the direction of a renters market. When paired with greater affordability these communities are likely to show strong growth in the coming months as more renters become aware of the options available to them.
Tertiary Markets (Populations ~100-235k)
Tertiary Markets Drill Down (M/M): Mar 2025 vs. Feb 2025
Notable Changes in Tertiary Market Demand Over The Past Month
*Demand scores in tertiary markets increased by +37.8% month-over-month, unique prospects are up 43.1 %, and available properties are up +3.8%.
Tertiary markets which in previous months saw the lowest relative shifts in active renters are instead at the front of the pack in March with the highest relative monthly increase in active renters +43.1%. While all of the markets in our rankings saw substantial monthly growth those markets which offer the greatest relative affordability and independence show the greatest relative monthly increases. Cambridge and Guelph saw the highest overall increases in active renters up +84.3% and, +71.1% respectively. Tertiary markets are likely to continue showing strong growth in the coming months with greater affordability likely acting as a draw on prospective renters.
Tertiary Markets Drill Down (Y/Y): Mar 2025 vs. Mar 2024
Notable Changes in Tertiary Demand Over the Past Year
*Overall, year-over-year demand scores are up by +23.2%, unique prospects are down by -8.0%, and available properties are up +2.8%.
Tertiary markets show the lowest annual declines in active prospects of all market segments down only -8.0% relative to the -21.9% average across the top 40 markets in demand. Likely a result of the substantial increase in active prospects experienced in March 2025, this influx likely suggests strong continued growth in rental demand with a potential to show positive yearly growth in the coming summer months. Tertiary markets also traditionally pull from an existing supply of local households and are less affected by international migration as these communities are not typically a destination for new entrants into the country with many instead choosing to settle in larger urban centres. As rental demand recovers and existing renter households decide to move, tertiary markets are likely to see a greater recovery.
Conclusion
March marked a significant rebound in Canadian rental demand and a return to seasonality, with active prospects up +35.2% nationally with all market segments experiencing growth in demand. Most notable are tertiary markets which have seen the greatest single-month increases in active prospects of all market segments +43.1%. This resurgence in rental demand aligns with the onset of spring and reflects a return to traditional demand trends, offering relief following a year of depressed rental demand. The surge in renter activity resulted in an increase in average prospects per property which further indicates that rental demand is growing relative to the existing supply which may offer further relief to properties suffering from slow leasing and growing pressure from vacancies.
Despite the return to seasonality bringing forward renewed rental demand, year-over-year comparisons continue to show subdued rental activity with active prospects down -23.3% annually. This softening of rental demand should not be a cause for long-term concern as existing renter households slowly return to market. Some of the softening can be attributed to affordability concerns however much of the losses in rental demand are also due to the sharp decline in international migration with new Non-permanent residents down -96% over the past two quarters; suggesting that the population of new renters entering the rental market is drastically reduced further compounding the slower pace of demand recovery.
What’s Next for Canadian Rental Demand?
The rebounding of rental demand in March is a promising sign for continued growth, however, a full recovery to pre-2024 demand levels is unlikely in the near term. Instead rental markets are likely to continue rebounding to varying degrees based on a variety of factors, most notably affordability which represents one of the key factors facing renters today. While primary markets are likely to continue to show strong growth, markets which offer a mix of affordability, strong employment opportunities, and housing availability will lead the charge in recovery.
Renter Priorities are Shifting
The rebound in demand is not simply tied to the population of active renters, but also their willingness to move and the factors that motivate them. With economic uncertainty prevalent, many renters prioritize affordability resulting in greater flexibility and a willingness to relocate in search of greater opportunities. This shift in renter sentiment will favour markets and properties that meet resident's practical needs and will require properties to ensure they are well-positioned to capture this renewed wave of demand.
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 6.2 this month, versus 4.1 last month. East York experienced a 2.1-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 East York, ON increased by 52% in March 2025 versus February 2025. The year-over-year demand score in East York increased by 3.6 points from March 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, East York, ON gained 1 position in our Top Canadian Cities in Demand Rankings
*This report provides month-over-month rental listing data for March 2025 versus February 2025 and a year-over-year comparison from March 2025 versus March 2024. It also outlines the month-over-month and year-over-year trends in primary, secondary, and tertiary markets.
