What is the average cost of rent in Canada? 2025 Market Analysis
The average cost of rent in Canada varies significantly by location, but nationwide figures indicate that rental prices have stabilized after years of rapid increases.
According to the latest data from Statistics Canada and CMHC reports, a one-bedroom apartment averages $1,520 to $2,200 nationally, while two-bedroom units range from $1,900 to $3,200, depending on the city and province.
However, these numbers tell only part of the story; understanding what drives rental costs and where Canadians spend their money reveals a more complex picture of Canada’s housing affordability crisis.
Current Average Rent Prices Across Canadian Provinces
The average rent in Canada exhibits significant regional variation, with some provinces charging nearly three times more than others for comparable housing.
Ontario Rental Market Reality
Ontario remains Canada’s most expensive rental province, primarily driven by Toronto’s significant influence on provincial averages. According to online data, one-bedroom apartments in Toronto average around $2,587 per month, while two-bedroom units cost around $2,690. However, rent prices in Toronto have actually declined by 4.7% year-over-year, indicating a cooling of the market from its previous peaks.
Outside Toronto, Ontario, cities like Oakville ($2,605) and Richmond Hill ($2,565) still command premium rents. More affordable Ontario options include Sarnia ($1,659) and Windsor ($1,692), demonstrating that location within the province significantly impacts rental costs.
British Columbia’s Vancouver-Driven Costs
British Columbia follows closely behind Ontario in rental costs, with Vancouver leading the charge at $2,830 for one-bedroom apartments. The province exhibits interesting patterns; while Vancouver proper has seen a 7% year-over-year decline in rent, surrounding areas like North Vancouver ($3,084) actually hold the title for Canada’s most expensive rental market.
Other B.C. cities show the range within the province: Richmond ($2,769), Coquitlam ($2,700), and Burnaby ($2,642) all cost significantly more than eastern Canadian cities but less than Vancouver proper.
Prairie Provinces Offer Value
The Prairie provinces provide Canada’s most affordable rental options. According to current data, nine of Canada’s ten most affordable rental markets are located in Alberta, Saskatchewan, and Manitoba. Lloydminster, Alberta, leads the way in affordability, with a monthly rent of $1,235, while Regina, Saskatchewan, offers one-bedroom apartments at $1,413.
Edmonton shows interesting dynamics as one of the few major cities with growing rents, up 0.6% year-over-year to $1,573. Calgary, despite being Alberta’s largest city, has seen rents decline 7.9% to $1,927, making it more affordable than many expected.
Understanding Canada’s Rental Market Trends in 2025
The rental market has shifted dramatically from the explosive growth seen in 2022-2023, with most major cities now showing signs of price stabilization or decline.
Year-Over-Year Changes Tell the Story
Canada’s rental market has entered a cooling phase after unprecedented growth. National asking rents decreased by 1.5% annually in June 2025, marking a significant shift from previous years, when rents increased by 8-12% annually. This cooling reflects multiple factors, including increased supply, economic uncertainty, and changing migration patterns.
Traditional Purpose-Built vs Condominium Rentals
The rental market shows interesting splits between property types. Purpose-built rental apartments posted a 1.1% annual decline but remain 24.6% higher than three years ago. Meanwhile, condominium rentals have seen larger decreases, with condo apartment rents down 4.9% annually, and rents in houses and townhomes are down 6.6%.
This difference reflects landlord behavior; purpose-built rental operators often provide incentives not captured in reported rents, while individual condo owners face more direct market pressure.
Interest Rate Impacts and Market Response
Bank of Canada’s interest rate changes have rippled through the rental market in unexpected ways. Lower rates should theoretically increase home buying and reduce rental demand; however, affordability challenges mean that many potential buyers remain renters. This has kept demand strong in expensive markets while allowing supply increases to cool rents in others.
Breaking Down Rental Costs by City and Property Type
Understanding what drives rental costs helps explain why prices vary so dramatically across Canadian cities and housing types.
| City | One-Bedroom Average | Two-Bedroom Average | Year-Over-Year Change |
| Vancouver, BC | $2,830 | $3,170 | -7.0% |
| Toronto, ON | $2,587 | $2,690 | -4.7% |
| Montreal, QC | $1,966 | $1,930 | -2.3% |
| Calgary, AB | $1,927 | $2,424 | -7.9% |
| Edmonton, AB | $1,573 | N/A | +0.6% |
| Ottawa, ON | $2,199 | $2,490 | +1.0% |
Condominium vs. Purpose-Built Differences
Condominium rentals typically cost more than purpose-built apartments but show greater price volatility. Individual condo owners often price their units higher but respond more quickly to market changes. Purpose-built rental buildings offer more stability but less room for negotiation for tenants.
Shared Accommodation Trends
Shared accommodations offer more affordable options, with Vancouver shared spaces averaging $1,301 (a 11.6% annual decrease) and Toronto shared options at $1,188 (a 3.9% decrease). However, Ottawa shows the opposite trend, with shared accommodation costs reaching $1,058, up 12.8%, as co-living spaces gain popularity.
What Canadians Actually Pay: Real-World Rental Costs
Beyond advertised rents, understanding total monthly housing costs reveals what Canadians actually spend on rental accommodation.
Additional Costs Beyond Base Rent
Most rental prices don’t include utilities, parking, or additional fees, which can add $200-$ 500 monthly to housing costs. Urban areas typically incur higher additional costs; downtown Toronto parking can add $300 or more per month, while utilities in older buildings may cost $150 to $250 per month, depending on usage and building efficiency.
The 30% Rule vs Reality
Financial advisors recommend spending no more than 30% of gross income on housing, but this proves unrealistic for many Canadians in expensive markets. In Vancouver and Toronto, even median-income earners often spend 40-50% of their income on rent, forcing them to make difficult choices about other expenses.
| Income Level | 30% Housing Budget | Affordable Rent Range |
| $50,000/year | $1,250/month | Studio/shared accommodation |
| $70,000/year | $1,750/month | One-bedroom in most cities |
| $100,000/year | $2,500/month | Two-bedroom in expensive markets |
| $150,000/year | $3,750/month | Comfortable choice in any market |
Regional Affordability Differences
The same income provides vastly different housing options across Canada. A $70,000 salary affords comfortable one-bedroom apartments in Edmonton or Montreal but requires shared accommodation or significant commutes in Vancouver or Toronto.
Rental Market Forces Driving Price Changes
Multiple factors influence Canadian rental costs, from government policy to demographic shifts that shape long-term market trends.
Supply and Demand Fundamentals
Canada’s rental market reflects fundamental supply-demand imbalances. Major cities like Toronto and Vancouver have seen significant rental construction, which has helped cool the markets. However, smaller cities often lack new supply, keeping pressure on existing stock.
Population growth through immigration continues to drive demand, but 2024 data show that non-permanent resident outflows increased significantly, reducing pressure in some markets. Ontario saw 66.5% more non-permanent residents leave in 2024 compared to 2023.
Landlord and Tenant Market Behavior
Rent control policies in Ontario and B.C. create interesting market dynamics. Existing tenants with controlled rents rarely move, creating artificial scarcity. When units do become available, landlords often increase rents significantly to reach market rates, making the 23.5% average increase for turnover units reported by CMHC.
Economic and Policy Factors
Government policies regarding immigration, interest rates, and rent control have a direct impact on rental markets. The federal government’s reduced immigration targets for 2025 are expected to ease rental demand, while provincial rent control policies continue to shape landlord behavior and tenant mobility.
Planning Your Rental Budget in Canada’s Current Market
Understanding market realities helps both current and prospective renters make informed decisions about housing costs and location choices.
Realistic Budget Expectations
Today’s rental market requires flexible expectations and strategic planning. In expensive markets, consider shared accommodation, longer commutes, or smaller spaces to help maintain a reasonable budget. Corporate Stays offers furnished options that can bridge gaps for people relocating or testing new markets before committing to long-term leases.
Market Timing Considerations
Rental markets exhibit seasonal patterns; spring and fall typically experience higher demand and prices, while the winter months often offer better deals. The current market cooling suggests renters have more negotiating power than they’ve had in years, particularly for longer-term leases.
Location Strategy for Affordability
Consider transportation costs when evaluating rental locations. A $400 monthly rent savings might disappear with $300 in additional transit costs and the time spent. However, truly affordable markets, such as those in the Prairies, can provide significant savings for remote workers or those willing to relocate.
Canada’s rental market continues evolving as supply, demand, and economic factors create new realities for both landlords and tenants. Understanding these trends helps make informed decisions about where and how much to spend on rental housing in today’s complex market.