Key Insights
- Québec City topped Canada’s tightest rental markets, closing Q4 2024 with a 99.1% occupancy rate and strong rental construction activity projected for 2025.
- Vancouver’s rental market may cool in 2025, as stricter immigration policies are expected to ease housing demand despite recent tight conditions.
- Winnipeg faces rising rents and low vacancy, spurring new development backed by supportive tax policies and investor interest.
- Rental demand has climbed in Winnipeg, Edmonton, and Victoria, driven by economic opportunities in manufacturing, tech, and remote work sectors.
Canada’s rental market is heating up, but the landscape is shifting. With Québec City’s occupancy rate nearing 100%, Vancouver bracing for a slowdown, and Winnipeg’s rental prices climbing, the stage is set for significant changes in 2025. Where will renters go next, and what’s driving the demand? Let’s dive in.
Occupancy Rates
As reported in the most recent Housing Market Outlook from CMHC, Québec (CMA) took the top spot as the tightest market at a 99.1% occupancy rate. With one of the lowest unemployment rates in the country, Québec has continuously attracted residents, many of whom rely on rental housing. As a result, housing starts are expected to push forward in 2025, driven by vigorous rental housing construction activity. Despite the projected increase in housing starts, rental demand is showing no signs of slowing, with forecasted vacancy rates, although upward trending, remaining the lowest throughout Canada. As a result, Québec’s rental market is positioned to remain red-hot in 2025.
Top 10 Census Metropolitan Areas (CMA) Based on Rental Occupancy Rates Year End 2024
Source: CMHC Housing Market Outlook, Peakhill Capital
Despite having the second-highest occupancy rate in 2024, Vancouver is expected to see a decrease in demand as immigration policies become more restrictive. As such, the tight market conditions of 2024 will likely ease in 2025 as demand slows and vacancies rise, with CMHC forecasting vacancy rates to hit 2.9% in 2027.1
Supply for purpose-built rentals has remained consistent in Winnipeg, and yet vacancy rates have remained low since 2023, CMHC highlighted. As such, we have seen rental rates for one-bedrooms increase 4.60% YoY in March, as demand continues to outpace supply.2 Moving forward, this rent growth, coupled with low vacancy rates, is expected to support new developments in Winnipeg. In addition, the elimination of provincial sales taxes on new rentals and the absence of rent controls for new builds will help boost rental development. Although CMHC forecasts vacancy rates to trend upwards, Winnipeg is projected to remain the tightest market in the Prairies in the coming years.1
Forecasted Vacancy Rates in Québec, Vancouver, and Winnipeg, Central Metropolitan Areas
Source: CMHC Housing Market Outlook, Peakhill Capital
Rental Activity
According to recent RentCafe data, Winnipeg secured the top spot for rental interest among Canadian cities. Attracting a consistent flow of workers, Winnipeg has established itself as a centre for manufacturing, agrifood, education, and healthcare. With strong demand and a diverse economic base, Winnipeg is quickly becoming one of the most appealing places to live and work in Canada.
Top 10 Trending Cities for Renter Interest Q4 2024
Source: RentCafe3, Peakhill Capital
Alberta’s capital, Edmonton, rose one position to secure second place last quarter. Although Alberta is primarily known as a leader in oil and gas, Edmonton has gained traction in the tech sector and has positioned itself as a leading tech market in North America with 1700+ technology companies calling Edmonton home.4 As such, Edmonton’s rental market is set to continue to benefit from young professionals seeking job opportunities who are likely to rent as opposed to buy. Victoria, our third-place finisher, has become a popular choice among remote workers despite the lack of affordable options in the area. As such, this coastal city has drawn in considerable rental activity, drawing most of its attention from renters in Vancouver and Oak Bay.5
With areas like Québec City, Winnipeg and Edmonton in competition for the top spot, Canada’s rental landscape remains hot, but shifting economic forces may reshape the map. With the federal election on the horizon, housing policy will play a key role in what comes next. The big question now is: who will take the lead in Canada’s rental race when we have a new Prime Minister?
Let’s continue the conversation
Footnotes
- Canada Mortgage and Housing Corporation. (2025, February). Housing market outlook. Canada Mortgage and Housing Corporation. https://www.cmhc-schl.gc.ca/professionals/housing-markets-data-and-research/market-reports/housing-market/housing-market-outlook#:~:text=Rental%20markets%20continue%20to%20rebalance,for%20other%20tenants%20(PDF) ↩︎
- Rentals.ca. (2025). National rent report. Rentals.ca. https://rentals.ca/national-rent-report ↩︎
- The final ranking is based on the sum of scores across all categories: availability of apartments (maximum of 40 points), page views (maximum of 30 points), apartments saved as favourites (maximum of 15 points) and saved personalized searches (maximum of 15 points). For each score, we considered year-over-year percentage change and overall volume. ↩︎
- Edmonton Global. (n.d.). Technology & innovation. Retrieved April 11, 2025, from https://technology.edmontonglobal.ca/en ↩︎
- Grecu, V. (2025, March 17). Canada renter interest report: Rental market insights for 2025. RentCafe. https://www.rentcafe.com/blog/rental-market/market-snapshots/canada-renter-interest-report/ ↩︎
