While Ontario’s overall rental market shows signs of stabilization, some cities are still seeing significant year-over-year rent increases in 2025. These hotspots are largely driven by three key factors: growing student populations, increased immigration, and strong tourism economies.
If you’re a renter, landlord, or real estate investor, understanding where rents are rising fastest can help you make more informed financial decisions.
Top Ontario Cities With Rising Rents in 2025
1. Gloucester (Ottawa Suburb)
Annual Rent Increase: 7.1%
Located just outside Ottawa, Gloucester leads the province in rent growth this year. Its proximity to government employment hubs, new suburban developments, and expanding infrastructure make it a desirable location for both immigrants and families.
2. Oakville
Annual Rent Increase: 6.7%
Oakville continues to attract professionals and families with its excellent schools, waterfront lifestyle, and easy GO Train access to Toronto. Rental prices have surged alongside demand, particularly for townhomes and condos.
3. Niagara Falls
Annual Rent Increase: 6.6%
As one of Canada’s most visited tourist cities, Niagara Falls is also becoming a popular destination for remote workers and newcomers. Short-term rentals are transitioning into long-term inventory, and rising immigration continues to push rents upward.
4. Greater Sudbury
Annual Rent Increase: 6.0%
As a regional service hub with both English and French educational institutions, Sudbury is seeing strong rental demand from students, healthcare workers, and those priced out of southern Ontario markets.
5. Guelph
Annual Rent Increase: 5.0%
Home to the University of Guelph and a booming innovation corridor, this mid-sized city has seen steady population growth. Demand for student and young professional housing continues to outpace supply.
Understanding the Rental Trends
Student Cities
Towns with universities and colleges—such as Guelph and Sudbury—see annual rent spikes tied to the academic calendar. The return of in-person learning and new international student arrivals are key contributors.
Immigration Hubs
Gloucester and Oakville have growing immigrant populations due to employment opportunities and community support services. As newcomers seek stable rental housing, demand (and prices) continue to rise.
Tourism Zones
In cities like Niagara Falls, tourism has kept rental demand high. Many investors who previously operated short-term rentals are converting to long-term tenants, reducing vacancy but raising rent prices.
Implications for Renters and Investors
Renters
If you’re relocating to one of these cities in 2025, expect higher competition and rising costs. It’s smart to expand your search radius or consider mid-sized towns nearby for better value.
Investors
These cities present strong rental income potential, especially for buy-and-hold strategies. However, investors should do due diligence on local vacancy rates, rent control policies, and short-term rental regulations.
Final Thoughts
Rising rents in pockets of Ontario highlight the uneven recovery of the housing market and the growing imbalance between housing supply and demand in certain high-growth zones. Whether you’re renting or investing, being proactive in these regions could pay off, if you act before prices climb further.
References
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