After years of relentless population growth and record-high rents, the market has entered a period of adjustment
Canada’s rental market appeared to be cooling in late 2025, with new data showing a dip in rent prices across the country as immigration slowed and interprovincial migration gained momentum.
After years of relentless population growth and record-high rents, the market has entered a period of adjustment, according to a report by rental platform liv.rent.
Rental prices fall in major hubs
Immigration levels fell across most provinces in early 2025, with Ontario, Alberta, and British Columbia seeing the sharpest declines.
Ontario led the drop, receiving 15,279 fewer immigrants in the first half of the year compared to 2024.
Canada’s population growth slowed to just 0.1% from April to July 2025, according to Statistics Canada. This slowdown happened because the number of non-permanent residents dropped sharply, following stricter federal immigration policies introduced last year.
Even in provinces with only slight declines, like Quebec, rental demand softened.
The impact was immediate in major cities. As of October 2025, year-over-year rents for unfurnished one-bedroom units dropped by $176 in Toronto, $168 in Calgary, $96 in Montreal, $78 in Edmonton, and $58 in Metro Vancouver.
Meanwhile, according to the latest National Rent Report from Rentals.ca and Urbanation, Canada’s rental market continued its downward slide in September, with average asking rents dropping 3.2% year over year to $2,123.
Migration shifts keep some markets robust
While some urban centres saw relief, interprovincial migration helped maintain or even boost demand in select regions.
Ontario recorded a net loss of 11,474 residents to other provinces in the first half of 2025, while Alberta attracted 12,880 new arrivals.
Nova Scotia and Prince Edward Island saw incoming migration surge by 66% and 363%, respectively.
These shifts kept rents steady or rising in some areas. In Edmonton, furnished one-bedroom rents increased 4.9% to $1,526, while two- and three-bedroom furnished units in Southeast Edmonton jumped by $311 and $363 year-over-year.
A market in transition
Canada’s rental market is moving from a period of intense demand to one of rebalancing, shaped by demographic changes and shifting regional economies.
While rents are easing in some urban centres, growing interprovincial migration continues to support housing demand in regions like Alberta and the Atlantic provinces.
While the current dip offers relief, underlying supply constraints and evolving migration patterns mean volatility could persist.
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