Canada Housing Market

A new dataset from Statistics Canada and the Canada Mortgage and Housing Corporation (CMHC) provides a fresh look at average asking rents across Canada. The first quarter of 2025 reveals key differences between Canada’s largest cities and smaller, more affordable markets- many of which are experiencing rapid rent inflation.

Canada’s Most Expensive Rental Markets

In Q1 2025, Vancouver led the country with the highest average asking rent for a two-bedroom apartment at $3,170, followed by:

• Toronto: $2,690
• Victoria: $2,680
• Ottawa: $2,490

By contrast, Montréal, Canada’s second-largest city, ranked 17th with an average asking rent of $1,930.

Quebec’s Smaller Cities Are Catching Up

Some of the fastest rent increases occurred in smaller Quebec CMAs:

• Drummondville: Up 100% from $600 in Q1 2019 to $1,200 in Q1 2025
• Sherbrooke: Up 89.4% from $660 to $1,250
• Montréal: Up 70.8% from $1,130 to $1,930

These areas once considered affordable are now seeing rent inflation outpace larger urban centres.

Slower Growth in Toronto and Vancouver

Larger CMAs experienced more modest relative growth:

• Toronto: Asking rents grew just 5.1% between Q1 2019 and Q1 2025 (from $2,560 to $2,690). After peaking at $2,920 in 2023, Toronto saw a 5.6% year-over-year decrease in Q1 2025.
• Vancouver: Rents rose 27.3%, from $2,490 to $3,170. Following a Q3 2023 peak of $3,580, rents fell 7.8% between Q1 2024 and Q1 2025.

A New Rental Tracking Tool

These insights come from a new quarterly rent statistics program developed by Statistics Canada and CMHC. It collects data from major rental platforms and provides experimental estimates for asking rents by bedroom count, giving a real-time view of current rental market conditions. Unlike rents tied to existing tenants and subject to rent controls, asking rents reflect current listings and true market demand.

Rooms for Rent Also on the Rise

In addition to apartment units, the report tracks average rents for individual rooms, which are often a more affordable housing option:

• Lowest average asking rents: Saguenay ($480), Sherbrooke ($500), Trois-Rivières ($510), Drummondville ($560), Québec ($570)
• Highest average asking rents: Vancouver ($1,070), Victoria ($970), Kelowna ($970), Nanaimo ($890), Kamloops ($870)

These numbers highlight a growing divide between provinces and signal that even room rentals are becoming less accessible in major urban centres.

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Stay updated on Canadian rental trends: @CanadaHousingMarket

Source: The Daily — Quarterly rent statistics, first quarter 2019 to first quarter 2025