New Data Show Shifting Rental Markets of Canadian Cities

At a Glance

Statistics Canada launched a new program providing quarterly data on average asking rents in Census Metropolitan Areas (CMAs), starting from 2019. This fills a major gap in timely, local-level rental data, which was previously limited or fragmented.

Long-Term Rent Increases (2019–2025)

• Most CMAs saw significant rent increases for two-bedroom apartments
• Drummondville: +100% (still lowest average rent at $1,200)
• Sherbrooke: +89.4% (second-lowest at $1,250)
• Moncton and Halifax had high rent growth, driven by strong population growth from immigration and interprovincial migration

Trends in Canada’s Six Largest Cities:

• Montréal: +70.8%
• Ottawa: +45.6%
• Calgary: +41.2%
• Vancouver: +27.3%
• Edmonton: +25.2%
• Toronto: +5.1%

Recent Market Shifts (2024–2025)

From 2024 to 2025, rent growth turned negative at-0.4% on average across CMAs. Over 20 CMAs recorded rent declines over this period.

 

______________________________________________

 

Rental Data Gives Window on Immigration and Economy

Timely and comprehensive rent data has historically been hard to access at the sub-provincial level in Canada. Policymakers and economists seeking to assess local rental markets have had to rely on annual statistics from the Canada Mortgage and Housing Corporations (CMHC) or data from individual online platforms with relatively limited coverage.

A new program from Statistics Canada provides quarterly data on average monthly asking rent in Census Metropolitan Areas (CMA) based on listings from several rental platforms going back to 2019.

The new data comes at a time when the rental market is experiencing shifting demand and price dynamics. Driven by immigration, Canada’s population increased rapidly between 2022 and 2024. This trend dramatically reversed in late 2024 and early 2025 after the federal government made changes to immigration policy, especially as it pertains to international students and temporary foreign workers. As new immigrants are more likely to rent, these shifts have impacted local rental markets across the country.

Average Asking Rent Rose Across CMAs

The data published by Statistics Canada shows spectacular rent increases in most CMAs between Q1, 2019 and Q1, 2025. Drummondville and Sherbrooke recorded the largest growth rates for two-bedroom apartments over this period (100 per cent and 89.4 per cent, respectively). Despite this growth, they still had the two lowest average asking rents among CMAs as of Q1, 2025 ($1,200 for Drummondville and $1,250 for Sherbrooke).

Fueled by permanent and temporary immigration and strong interprovincial migration, Moncton and Halifax recorded some of the highest population growth rates between 2019 and 2024 (latest data available). This had a direct impact on demand for rental units as both CMAs saw notably high rent increases.

Rent Dynamics Shifted in the Last Year

Headline numbers about the 2019-2025 period do not tell the full story of how the rental market has evolved since the COVID-19 pandemic.

Looking at the asking rent for a two-bedroom apartment, the average of CMAs’ annual growth rates ranged between 6.7 per cent and 11.1 per cent between 2020 and 2024. This average cratered in 2025 and settled in negative territory at -0.4 per cent. A total of 21 CMAs saw the average asking rent decrease between Q1, 2024, and Q1, 2025. Of this group, ten CMAs were in Western Canada and eight in Ontario.

Trends in Canada’s Largest Cities

As of Q1, 2025, Vancouver, Toronto and Ottawa had three of the four highest average asking rents in the country. Calgary, Edmonton and Montréal had lower rents than several large and medium CMAs across Canada.

The average asking rent for two-bedroom apartments in Canada’s six largest cities increased at wildly different rates between Q1, 2019, and Q1, 2025, with Montreal topping the list:

1. Montréal (70.8 per cent)
2. Ottawa (45.6 per cent)
3. Calgary (41.2 per cent)
4. Vancouver (27.3 per cent)
5. Edmonton (25.2 per cent)
6. Toronto (5.1 per cent)

While still very expensive, average asking rent in Toronto has been dramatically seesawing since 2019. This explains why the city had the lowest rent growth (5.1 per cent) among its peers.

During the COVID-19 pandemic, public health restrictions limited immigration to Toronto while people were moving out of the city in large numbers. As a result, the average rent for a two-bedroom unit declined 14.1 per cent between Q1, 2020, and Q1, 2021.

Rent then recovered to hit a peak of $2,920 in the second half of 2023. Similar to other CMAs, Toronto recorded a new contraction in average asking rent between Q1, 2024, and Q1, 2025, as immigration once again slowed down.

Despite witnessing significant rent growth in recent years, Calgary, Edmonton and Montréal are relatively better positioned to remain more affordable in the coming years compared to their peers. According to CMHC, the three CMAs saw the number of multi-unit market starts increase in 2024 whereas Toronto, Vancouver and Ottawa all saw fewer starts.

Keeping this positive momentum in housing starts going is particularly important for Calgary and Edmonton as Alberta has been the fastest growing province in recent years. This influx of people increases demand for ownership and rental housing in Alberta.

The Rental Market Faces an Uncertain Outlook

CMHC forecasted in its 2025 Housing Outlook that the average rent for a two-bedroom apartment would grow between 9.3 per cent (Victoria) and 1.3 per cent (Toronto) in major Canadian CMAs this year. However, significant uncertainty around the trajectory of the rental market persists as population growth remains limited and economic volatility continues. These factors could impact both demand and supply.

Amid this uncertainty, timely data will be highly valuable to help analysts and municipalities understand how their local rental markets are evolving.

Sebastien Labrecque is the Chief Economist and Executive Director of StrategyCorp’s Institute of Public Policy and Economy.