Canada’s Rental Market Sees Relief as Temporary Residents Exit
CMHC Reports Rent Drops in Major Cities—Newcomers May Finally Catch a Break
A significant shift is underway in Canada’s rental housing landscape. According to the Canada Mortgage and Housing Corporation (CMHC), advertised rents in several major cities have declined for the first time in years. This trend is largely attributed to reduced demand from temporary residents, including international students and foreign workers.
These changes are part of the findings in CMHC’s 2025 Mid-Year Rental Market Update, offering insight into shifting patterns in rental prices and availability—especially relevant to newcomers entering Canada.
Rents Drop in Big Cities: Vancouver, Calgary, Toronto Among the Most Affected
CMHC data reveals that advertised rents fell by 2–8% in Q1 2025 compared to the same period in 2024 in cities like Vancouver, Calgary, Toronto, and Halifax.
| City | YoY Change (Q1 2024 vs. Q1 2023) | YoY Change (Q1 2025 vs. Q1 2024) |
|---|---|---|
| Vancouver | +1.20% | -4.80% |
| Calgary | +10.70% | -3.60% |
| Toronto | -0.50% | -1.70% |
| Halifax | +11.70% | -8.30% |
In contrast, markets such as Edmonton, Ottawa, and Montreal saw slower rent increases rather than outright declines. These moderated increases reflect softer demand and improved supply.
Why Are Rents Falling? A Combination of Lower Demand and Higher Supply
The CMHC attributes these trends to reduced rental demand, especially in provinces like Ontario, British Columbia, and Nova Scotia, which are traditionally hubs for international students.
Simultaneously, new rental housing completions are exceeding the 10-year average across most major cities. This surge in supply, especially in purpose-built rentals, is giving renters more options and bargaining power.
Vacancy Increases and Incentives Grow
Landlords—particularly in cities like Toronto, Calgary, and Vancouver—are reporting longer timeframes to fill units, with growing competition from the secondary rental market, such as condos or investor-owned properties.
As a result, many property managers are offering move-in bonuses, first-month rent-free deals, and cash incentives to attract tenants. Despite this, some landlords may soon need to lower base rents to keep up with rising vacancies.
Temporary Resident Caps Weaken Demand
Canada’s decision to cap international student intake and implement stricter controls on temporary workers is having a direct impact on rental markets. According to Statistics Canada, between January and April 2025, the number of temporary residents (students and workers) fell by over 61,000, contributing to a major slowdown in population growth—just 20,107 people added over the same period.
Census metropolitan areas like Halifax, Toronto, and Vancouver—which are especially dependent on international populations—are feeling the effects of this shift most intensely.
Rent Affordability Remains a Concern
Despite falling rents, the rent-to-income ratio—a key affordability measure—remains high in many cities. This means housing is still expensive relative to what people earn.
| City | Rent-to-Income Ratio (2025) |
|---|---|
| Vancouver | 17.80% |
| Toronto | 16.40% |
| Calgary | 13.70% |
| Halifax | 13.90% |
| Montreal | 13.30% |
The figures suggest that while some pressure is easing, housing affordability remains a challenge, especially for newcomers without established financial roots.
Know Your Rights: Rent Control Could Be Your Ally
Newcomers are encouraged to understand provincial rent control laws, which can prevent sudden rent hikes and offer more stability.
| Province | Rent Control Status |
|---|---|
| Ontario | Yes – for buildings occupied before Nov 2018 |
| British Columbia | Yes |
| Nova Scotia | Yes – 5% cap until December 2027 |
| Alberta, Quebec, SK, others | No |
Rent control rules vary by province, so renters should always check local laws when signing a lease.
Looking Ahead: A Time of Transition
As immigration slows and new units continue to hit the market, the rental market is undergoing a healthy adjustment period. Experts believe this rebalancing could improve affordability in the medium term, although high income-to-rent ratios still pose a problem.
For newcomers to Canada, this may be a window of opportunity to find better rental deals, especially in cities that were previously unaffordable.
For a consultation about Immigration options, reach out to the CAD IMMIGRATION today!
