Residents in Canada are seeing lower rents.
The Canada Mortgage and Housing Corporation (CMHC), the country’s national housing authority, has reported declines in asking rents in several major housing markets due to outflows of international students and foreign workers.
Softening markets include Toronto, Vancouver, and Calgary.
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This article will cover key findings from CMHC’s 2025 Mid-Year Rental Market Update impacting new renters to Canada, and tips for newcomers to save on rent.
Changes in rents
Advertised rents in Calgary, Toronto, Vancouver, and Halifax saw declines of between 2-8% in Q1 of 2025, compared to the same time in 2024.
Over the same period, other key housing markets, such as Montreal, Edmonton, and Ottawa saw the rate of increase in advertised rents slow substantially compared to the same period in 2024.
| City | Year-over-year change (Q1 2024 vs. Q1 2023) | Year-over-year change (Q1 2025 vs. Q1 2024) |
|---|---|---|
| Vancouver | 1.20% | -4.80% |
| Edmonton | 10.00% | 2.90% |
| Calgary | 10.70% | -3.60% |
| Ottawa | 3.80% | 2.90% |
| Toronto | -0.50% | -1.70% |
| Montréal | 2.40% | 3.80% |
| Halifax | 11.70% | -8.30% |
The CMHC attributes these decreases to reductions on the demand side of the rental market, in conjunction with strong gains in supply.
Advertised or asking rents are a particularly relevant metric to many newcomers entering Canada’s rental housing market, as these tend to be the prices that those new to the country must contend with, in the absence of strong social ties in a new country.
Landlords are observing that vacant units are taking longer to lease–particularly for new purpose-built rental properties in Toronto, Vancouver, and Calgary—on account of increased competition from well-supplied secondary rental markets.
Owners in the secondary rental market are generally more willing to lower rents to reduce vacancies.
Meanwhile, purpose-built rental operators are adjusting to market conditions by offering incentives to attract new tenants, such as one month of free rent, moving allowances, and signing bonuses. Despite this, the CMHC reports that many operators expect they may need to lower rents over the next few years.
The report further details that completions of rental housing units are above their “10-year historical averages” in most of Canada’s housing markets, indicating a positive trend for the country’s rental housing supply.
Immigration restrictions stymie population growth
The recent decline in advertised rents is also linked to slower international migration and a reduction in temporary residents, which in turn has impacted the recently all-time high rental demand in Canada.
After reaching a peak around mid-2023, advertised rents dropped more noticeably in census metropolitan areas (CMAs) that are more sensitive to these shifts, such as Vancouver, Toronto, and Halifax.
Additionally, the CMHC reports that Canada’s cap on international student intake and changes to how students are distributed across provinces are putting downward pressure on rental demand in British Columbia, Ontario, and Nova Scotia.
Meanwhile, growth in the number of non-permanent residents slowed in Quebec and Alberta, possibly contributing to a slowed growth in advertised rental prices in these areas.
In Q1 2025, these provinces all experienced declines in the number of work and study permit holders.
Between January 1, 2025, and April 1, 2025, Canada’s population grew by just 20,107 people. This slowdown in population growth was mainly due to a decline in the number of temporary residents and permanent resident admissions.
According to Statistics Canada, the number of temporary residents (work and study permit holders) in Canada fell by 61,111 from January 1, 2025, to April 1, 2025.
Positive outlooks
Throughout the remainder of 2025, Canada’s rental market is projected to be shaped by slower population growth and evolving employment conditions.
With demand lagging behind the addition of new supply, the market is expected to stay in a period of adjustment. This is especially evident in Ontario, where reduced international migration targets are having an impact, particularly in areas close to post-secondary institutions.
This period of adjustment is sorely needed in the context of Canada’s current rental market.
While the above trends are encouraging, overall housing affordability has not eased much, as advertised rents to income ratios remain high across many housing markets.
Advertised rent-to-income ratios in March of each year:
| City | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Vancouver | 18.20% | 17.00% | 16.30% | 17.80% |
| Edmonton | 11.50% | 12.20% | 12.30% | 12.50% |
| Calgary | 11.60% | 12.40% | 14.10% | 13.70% |
| Toronto | 14.50% | 14.70% | 15.20% | 16.40% |
| Ottawa | 12.10% | 11.30% | 11.80% | 12.50% |
| Montréal | 11.50% | 12.20% | 13.20% | 13.30% |
| Halifax | 12.70% | 13.50% | 14.10% | 13.90% |
Rent control: A powerful way to save on rent for newcomers
Rent control refers to regulations that limit the amount landlords can raise rent over time.
These regulations are designed to protect tenants from sudden, steep rent increases that could make housing unaffordable, and can provide more affordable entries into Canada’s labour market for newcomers.
In Canada, provincial governments are responsible for creating and enforcing rent control regulations. This means the rules can vary widely depending on where you live:
| Province | Rent Controlled? |
|---|---|
| Alberta | No |
| British Columbia | Yes |
| Manitoba | Yes |
| New Brunswick | No |
| Newfoundland and Labrador | No |
| Northwest Territories | No |
| New Scotia | Yes* |
| Nunavut | No |
| Ontario | Yes** |
| Prince Edward Island | Yes |
| Quebec | No |
| Saskatchewan | No |
| Yukon | No |
*Rent increases are capped in Nova Scotia at 5% yearly until 31 December 2027.
**Rent control in Ontario is only applicable to residential units built or first occupied prior to the 15th of November 2018. Newer building are exempt.
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