Maple News reports that Canada’s rental housing market is showing signs of softening, with average asking rents declining in key urban centres. This trend is connected to a reduction in the number of temporary residents—particularly international students and foreign workers—who have recently left the country in greater numbers.
According to the Canada Mortgage and Housing Corporation (CMHC), major cities including Toronto, Vancouver, Calgary, and Halifax experienced rent drops of 2% to 8% in the first quarter of 2025 compared to the same period in 2024. Meanwhile, cities like Edmonton, Ottawa, and Montréal saw rents continue to rise, but at a slower pace than in previous years.
The sharpest year-over-year rent declines were reported in Halifax (-8.3%), Vancouver (-4.8%), and Calgary (-3.6%). Toronto saw a more modest drop of 1.7%. On the other hand, Montréal was one of the few cities with a notable increase in rents, rising by 3.8%, while Edmonton and Ottawa saw smaller gains of 2.9% each.
These shifts mark a reversal of rental market pressures seen in recent years, driven largely by surging immigration and limited housing supply. However, CMHC data for early 2025 shows that a doubling of rental housing completions and a reduction in demand from temporary residents are easing the strain on renters.
The departure of temporary residents is widely believed to be linked to federal policy changes that introduced caps on international student permits and tightened rules around work permits for foreign workers. These efforts aimed to balance immigration levels with available infrastructure, including housing.
This lull in rental demand offers a potential reprieve for newcomers and Canadians alike, after years of climbing rental costs in high-demand regions. For international newcomers planning to move to Canada, this trend may present rare affordability opportunities—especially in previously unaffordable cities like Vancouver and Halifax.
Still, the CMHC cautions that demand could rebound swiftly depending on changes in immigration flows and housing completions. The current rental relief may be temporary unless structural supply-side challenges continue to be addressed.
This mid-year rental market shift underscores how immigration policy, housing supply, and population mobility remain interconnected in shaping Canada’s urban housing landscape.