Rent Report: February 2025 – The Ups, Downs, and the Surprising Shifts in Canada’s Rental Market

Renters across the country have been taking a collective sigh of relief these past few months. After years of seemingly unstoppable rent hikes, Canada’s national average asking rent has slid to an 18-month low of $2,100. Does this mean our days of scouring the city for a budget-friendly spot are over? Not exactly—but there are definitely some compelling shifts happening in the rental landscape for February 2025.

TL;DR (Quick Highlights)

• National average asking rent now sits at $2,100, down 4.4% from a year ago.
• Four straight months of annual rent declines followed a 38-month streak of annual increases.
• Ontario led the country in rent declines (down around 5%), with Toronto hitting a 30-month low.
• Vancouver still ranks among the priciest, averaging $2,896 for apartments, despite a 13% drop from its peak.
• Purpose-built rentals (studios and three-bedrooms) are seeing modest rent increases, while condos and houses in the secondary market are sliding.
• Shared accommodations (roommate rents) surged in supply, pushing average monthly rents for rooms down to an 18-month low of $933.

The Deep Dive: What’s Going On?

1. National Overview: A Welcome Breather for Renters

For the fourth month in a row, annual rent growth declined. The average asking rent for all residential properties sits at $2,100, its lowest level in a year and a half. However, remember that rents jumped significantly in previous years—so even with the recent drop, Canadians are still paying about 5.2% more than two years ago and 16.4% more than three years ago.

2. Regional Rankings: Vancouver, Toronto & Beyond

• Vancouver, BC holds onto its gold medal as one of Canada’s most expensive cities, despite apartment rents falling 5% year-over-year to $2,896.
• Toronto, ON isn’t far behind. It posted a 7.6% yearly rent decline, now averaging $2,615—the lowest it’s been in 30 months.
• Calgary, AB saw the second-largest drop among big cities, down 6% to $1,925.
• Edmonton, AB is one of the few major markets bucking the trend, showing a 3.3% increase over last year to $1,529.

3. Ontario Takes the Biggest Hit

Ontario rents dipped about 5% overall, led by consistent downward pressure on apartment rates across all unit sizes. If you’re looking for a place in the GTA, you might find a few (slightly) better deals than last year. But “better deal” is still a relative term—Toronto is no bargain bin, to say the least.

4. Secondary vs. Purpose-Built Rentals

• Secondary market (condos, houses/townhouses): These properties saw the steepest declines. Condo rents dropped 6.5% to an average of $2,219, while houses and townhomes slumped 8.9% to $2,144.
• Purpose-built rentals: The dip was modest at 1.7% overall. Studios and three-bedroom units actually got pricier (up 0.5% and 2.1% year-over-year, respectively), pointing to an ongoing demand for the most cost-effective options and larger shared homes.

5. The Rise of Roommates

Roommate listings soared by 42% this year, flooding the market and driving down shared accommodation costs by 7.6% annually to an average of $933. This could spell good news if you’re open to living with others—especially in pricier hubs like Vancouver or Toronto.

6. Provincial Spotlights

• Alberta, Saskatchewan, and Manitoba remain the most affordable, each seeing modest (2-3%) rent increases.
• British Columbia still has the highest apartment rents despite a small dip.
• Quebec is mostly holding steady, with some cities like Gatineau posting double-digit rent increases, while Montreal remained relatively flat.

Ontario Municipal Spotlight: Insights on Brampton, London, Barrie, Hamilton & Whitby

While major markets like Toronto and Vancouver often steal the headlines, several other Ontario municipalities are experiencing interesting shifts of their own. Here’s what’s happening in a few key cities:

Brampton

• Snapshot: With an average 1-bedroom asking rent of around $2,121, Brampton has generally trended below Toronto’s rental prices—but not by much.
• Recent Changes: Year-over-year, rents for one-bedroom units dipped about 3.1%, while two-bedroom units also fell slightly. Month-over-month changes, however, show a modest bump, suggesting Brampton’s market could level off or even edge upward in 2025.

London

• Snapshot: London’s average rent for a 1-bedroom hovers around $1,766; a 2-bedroom sits at $2,148.
• Recent Changes: Over the past year, rents declined by roughly 4% for a 1-bedroom. Despite the dip, London remains an attractive hub for students and professionals seeking a more affordable alternative to the GTA.

Barrie

• Snapshot: Barrie has been a growth market for years. A 1-bedroom rents for roughly $2,020, showing some of the province’s healthier mid-market rates.
• Recent Changes: Year-over-year, 1-bedroom apartment rents in Barrie are actually up (over 4%), though 2-bedrooms have dipped slightly. This reflects a broader demand for smaller, more economical units in commuter-friendly cities.

Hamilton

• Snapshot: Hamilton’s average asking rent sits around $1,720 for a 1-bedroom, or $2,077 for a 2-bedroom (across all property types).
• Recent Changes: Like much of Ontario, Hamilton saw an overall rent decrease of around 4% in the past year. Historically known for more affordable housing compared to Toronto, The Hammer still offers relative cost savings, but inventory remains tight in certain pockets.

Whitby

• Snapshot: Though Whitby isn’t featured in the top 35 city rankings, it’s part of the booming Durham Region.
• Local Context: Just east of Toronto, Whitby has long attracted commuters looking for suburban space without the GTA price tag. While official rental stats are sparse, it tends to mirror Oshawa’s trends (Oshawa’s average 1-bedroom is about $1,799, down 2% annually). Expect steady demand as more people opt for suburban living.

Alberta Municipal Spotlight: Calgary & Edmonton

While Ontario often dominates the headlines, Alberta has been one of the country’s more dynamic markets—particularly over the last year.

Calgary

• Snapshot: Calgary’s average apartment rent is $1,925, reflecting a 6% annual decrease. For context, it’s the second-largest rent decline among Canada’s biggest cities.
• Recent Changes: This marks the sixth straight month of slipping year-over-year rents, suggesting a market correction after a period of rapid increase. Compositional factors—like more listings in lower-cost segments—could be pulling the average down, while more expensive units are either leaving the rental market or taking longer to fill.
• What’s Next? Even with these decreases, Calgary remains pricier than many other Alberta cities but still more affordable than larger markets like Toronto and Vancouver. Ongoing job growth in Calgary’s tech and energy sectors could influence future demand.

Edmonton

• Snapshot: Edmonton saw a 3.3% uptick year-over-year, with rents now averaging $1,529.
• What’s Driving the Increase? Partly, it’s tied to steady in-migration and a more stable employment picture, particularly in energy and related industries. Despite growth, Edmonton is still one of the more affordable major cities in Canada, which attracts newcomers looking for bigger spaces at lower costs.

The Broader Alberta Picture

• Province-Wide Trends: Alberta’s average for apartments and condos sits around $1,731, up about 2% from last year. This mild increase reflects the contrast between Calgary’s recent drop and Edmonton’s gains.
• Affordability Factor: Compared to Ontario or B.C., Alberta remains relatively budget-friendly. Even after the pandemic-driven ups and downs, vacancy rates have offered some cushion for renters.
• Secondary vs. Purpose-Built: Like the rest of Canada, purpose-built units in Alberta showed smaller fluctuations in rent, while condos and secondary suites accounted for bigger swings—often downward if supply outpaces demand in certain areas.

Key Takeaways

If you’re navigating the rental market right now, be sure to do your homework. Some of the biggest, priciest cities have seen notable drops—good news if you’re ready to jump in and sign a lease. But overall, rent levels haven’t undone the major increases of the last few years. Keep an eye on new listings and changes in unit composition (like more luxury units entering the market) as they can skew asking rents in either direction.

That being said, with the shift in roommate rentals and the dipping condo market, there are potential opportunities out there for savvy renters. After years of feeling like the sky was the limit, it looks like the Canadian rental market is finally coming back down to Earth… at least for now.

However, looming tariffs on Canadian goods and growing warnings about a potential recession suggest the economic landscape could shift quickly. Rental trends could change if unemployment rises or consumer confidence dips, so staying informed about broader economic factors will be just as important as watching local rental data.

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