by Mo Monsef 
One of the hottest rental markets now has the slowest price growth of all Canada’s big cities
Moderation in Canada’s Rental Market
2024 has been a year of moderation for Canada’s rental market, as rent prices slowed in most of the country’s largest urban centres. Although rising vacancy rates and increased housing supply provided some relief for tenants, regional disparities continued to shape the market, according to the Canada Mortgage and Housing Corporation (CMHC).
In Toronto, rent growth dropped significantly to just 2.7% in 2024, a sharp decrease from 8.8% the previous year. This decline was primarily driven by a record surge in rental apartment availability, especially in condominiums, which resulted in higher vacancy rates. Additionally, low turnover rates limited landlords’ ability to raise rents, particularly in rent-controlled units.
As a result, Toronto now experiences the lowest rent growth among Canada’s major census metropolitan areas (CMAs), marking a significant cooling trend in what was once one of the hottest rental markets in the country. According to CMHC, “for occupied units under rent control, landlords had limited ability to increase rents beyond the provincial guideline.”
Regional Differences in Canada’s Rental Market
In contrast to Toronto, Vancouver and Montréal experienced relatively strong rent growth, as demand in these markets remained high. Montréal saw a slight increase in vacancy rates due to record levels of new rental completions, while Vancouver’s supply growth slowed. However, strong demand helped maintain rent growth above historical averages, preventing it from cooling as much as in other cities.
Calgary stood out as an exception, reporting the highest rent growth among major Canadian cities, although the pace slowed compared to previous years. The city’s strong migration-driven population growth and the increase in new rental units continued to support high demand. Unlike Ontario and British Columbia, Alberta’s absence of rent control policies gave landlords more flexibility. CMHC pointed out that “landlords had more flexibility to increase rents for existing tenants, as they were not bound by rent increase guidelines.”
In Halifax, 2024 provided significant relief to renters. A boom in rental construction and slowing population growth alleviated pressure on the market, pushing the vacancy rate up to 2.1%, the highest in years. Average rent growth in Halifax dropped sharply to 3.8%, a significant decrease from 11% in 2023, marking the largest year-over-year decline among major markets.
Meanwhile, Ottawa and Edmonton bucked the national trend, experiencing slight increases in rent growth. Both cities saw stronger rental demand in 2024, allowing landlords to raise rents moderately for existing tenants while charging higher prices for newly completed units.
As CMHC noted, “stronger rental demand allowed both areas to catch up,” a trend that was especially noticeable in the turnover and completion of newly constructed rental units. In 2024, rent growth in both regions aligned with the provincial averages.
