Rent in Canada is starting to rise again — but these cities have sneaky deals

After six straight months of declines, rent in Canada is heading back up — and Canadian renters considering a move might want to act fast.

According to the latest National Rent Report from Rentals.ca and Urbanation, the average asking rent across the country rose by 1.5% in March. That marks the first monthly increase since September 2024, and it could signal a shift in the rental housing market Canada hasn't seen in half a year.

Nationwide, the average rent now sits at $2,119 — although that price varies hugely depending on where in the country you're renting.

While the national average is still 2.8% lower than this time last year, the uptick in March suggests that the cost of living could be on the rise again — especially in cities where demand is heating up just in time for spring.

What's pushing rent higher?

Rentals.ca attributes the rebound to a mix of seasonal demand and improving affordability after months of cooling prices. More renters are returning to the market, and even with a record number of newly built apartments becoming available, competition is starting to tighten.

It's already affecting many cities — and not just the big ones. While places like Toronto and Vancouver are still seeing year-over-year rent declines, several smaller or mid-sized markets are experiencing above-average growth.

Where rent is rising the fastest right now

Some cities that used to be affordable are now seeing noticeable increases. Halifax rent jumped 4.9% compared to last year, reaching an average of $2,254 — now higher than both Ottawa and Montreal.

Edmonton rent inched up by 0.4%, and Winnipeg rose 0.6%. That might sound minor, but in cities that have been known for lower costs, these increases could be a sign of bigger changes ahead.

Looking at unit types, the biggest rent hikes were for three-bedroom apartments, which jumped 3.7% year-over-year across Canada. Studios also went up slightly, while one- and two-bedroom units continued to fall — but possibly not for long.

Some cities are still seeing rent drop — for now

While the overall market is trending upward, not everyone's feeling the pinch yet — so now might be the time to lock in one of these rates before they do.

Toronto rent dropped to its lowest level in nearly three years — down 6.4% year-over-year for one-bedroom units ($2,313) and 9.8% for two-bedrooms ($2,929).

Vancouver rent also fell, with one-bedrooms now averaging $2,531 and two-bedrooms at $3,430 — down 3.9% and 5% from last year in Canada's most expensive metro area.

Calgary saw the biggest overall drop among major cities, with average rents falling 9.3% since last year to $1,951.

These cities may still be more expensive than average, but for renters thinking of relocating, the timing could be ideal.

The most expensive cities for renters in Canada right now

These are the top five cities with the highest average asking rents for March 2025:

1. North Vancouver, BC — 1-bedroom: $2,667 | 2-bedroom: $3,471
2. Vancouver, BC — 1-bedroom: $2,531 | 2-bedroom: $3,430
3. Coquitlam, BC — 1-bedroom: $2,438 | 2-bedroom: $2,932
4. Burnaby, BC — 1-bedroom: $2,336 | 2-bedroom: $3,024
5. Kanata, ON — 1-bedroom: $2,333 | 2-bedroom: $2,909

The most expensive spots are mostly in British Columbia, where rent continues to outpace most of the country. But don't sleep on Ontario — Toronto, Vaughan and Oakville are close behind, all clocking in above $2,200 for a one-bedroom.

The cheapest places to rent in Canada

At the other end of the spectrum, here's where rent is most affordable in March 2025:

1. St. John's, NL — 1-bedroom: $1,011 | 2-bedroom: $1,188
2. Lloydminster, AB — 1-bedroom: $1,039 | 2-bedroom: $1,251
3. Medicine Hat, AB — 1-bedroom: $1,195 | 2-bedroom: $1,395
4. Regina, SK — 1-bedroom: $1,242 | 2-bedroom: $1,486
5. Quebec City, QC — 1-bedroom: $1,276 | 2-bedroom: $1,760

Even with modest increases in some of these spots, they remain the most budget-friendly rental markets in the country — which could make them a draw for renters looking to make a move.

Sneaky savings near the big cities

For renters eyeing Toronto, Vancouver or Montreal but hoping to spend less, there are still pockets of affordability just outside the downtown cores.

Côte Saint-Luc, a small enclave on the island of Montreal, saw the biggest year-over-year rent decrease in the country — down 18.3% for one-bedrooms. Average rent here for a one-bedroom is $1,587, which is more than $130 less per month than in the city of Montreal itself.

Over in Metro Vancouver, several suburbs have seen major drops. Langley is down 12.5% for one-bedrooms to $2,081, Surrey is down 11.6% to $1,855 and New Westminster dropped 8.3% to $2,106. While these are far from the lowest in the country — or even the province — they're all well over $400 cheaper than downtown Vancouver prices, all while being less than an hour away from the city.

Meanwhile, in Toronto, East York — still part of the city proper — saw one-bedroom rents drop 12.2% from last year to an average of $2,052. That's more than $250 less than the downtown average and one of the sharpest price cuts in the GTA.

What this means for renters

The past six months offered a rare breather from Canada's sky-high rent prices — but that window might be closing. With the first monthly rise in over half a year, and seasonal demand heating up, renters who've been holding off on a move may want to consider locking in a lease before prices climb further.

AI tools may have been used to support the creation or distribution of this content; however, it has been carefully edited and fact-checked by a member of Narcity's Editorial team. For more information on our use of AI, please visit our Editorial Standards page.