Is Lifelong Renting Becoming Canada’s New Normal?
Canada’s Shift Toward Long-Term Renting: What the Data Shows
Source: The Province
Renting in Canada has long been seen as a temporary stage: something people move through on their way to homeownership. But recent data suggests this pattern may be shifting. More Canadians are renting later into their lives, staying in the same rental homes longer, and in many cases treating renting as a long-term or even permanent housing arrangement.
Below is a closer look at who Canadian renters are today, how affordability is evolving, and what these trends may mean for the years ahead.
Who Is Renting in Canada Today?
The median Canadian renter is now 32 years old, according to SingleKey’s November report, and 11.7% of renter households include children. In major metropolitan areas such as Toronto and Vancouver, the typical renter is closer to 34.
SingleKey chief executive Viler Lika notes that the common assumption, renters being primarily in their twenties, no longer holds. Rising living costs are extending the renting years for many households. At the same time, more young adults remain with parents longer to save money, which further shifts the age profile upward.
Some older Canadians are also entering the rental market. CMHC deputy chief economist Aled ab Iorwerth points out that downsizing into rental apartments to free up retirement income is becoming more common, adding to the increase in median renter age.
Statistics Canada data also shows renters are moving less often. In 1996, almost 30% had changed addresses in the previous year. By 2021, that number had fallen to 19.9%, indicating a shift toward longer-term tenancies.
How Much Do Renters Earn?
Renter households report incomes between $109,000 and $125,000, well above Canada’s average personal income. This aligns with the growth of dual-income rental households: couples, partners, or roommates combining earnings to meet higher costs.
Affordability pressures remain significant. Traditionally, landlords preferred tenants spending no more than 30% of their income on rent. Today, the average rent-to-income ratio is 32.6%, and rises to 35.6% in Vancouver. When factoring in debt payments, the ratio reaches 38% nationally.
Much of this pressure stems from post-pandemic rent increases. CMHC recorded record-high rent growth in 2023, outpacing wage gains due to low vacancy rates and strong demand. Although rent growth has since slowed — with weaker labour markets and reduced migration — newer rental buildings continue to enter the market at higher price points, reflecting elevated construction costs and expanded amenities.
The average asking rent in October was $2,105, slightly lower than the year before but still far above pre-pandemic levels.
Where Is Rental Demand Strongest?
Rental markets across Canada are moving at different speeds. CMHC notes:
- Declining advertised rents: Calgary, Toronto, Vancouver, Halifax
- Continued increases: Edmonton, Montreal, Ottawa
Montreal and Edmonton already have larger-than-average renter populations, but affordability challenges in Toronto and Vancouver continue to draw more households into long-term renting.
Slower growth in the number of international students has also affected demand in Ontario, British Columbia, and Nova Scotia. Fewer study and work permit holders in early 2025 eased some pressure on local markets.
RentCafe’s rental search rankings show strong activity in Ontario overall, though Moncton, New Brunswick, ranked as the most sought-after rental market nationwide.
SingleKey also highlights Winnipeg, where renters tend to be older (median age 34.1) and more likely to have children. Despite lower rents, incomes are also lower, and indicators such as credit scores and bankruptcy rates point to greater financial strain among renter households.
What Could the Rental Market Look Like Next?
The past several years have seen rapid swings in renter behaviour, shaped by pandemic-era moves, economic uncertainty, and shifting immigration policy. “It’s really been a roller coaster,” Lika said.
Looking ahead, several trends are emerging:
- Reduced condo construction in response to weaker sales
- Growth in purpose-built rentals, often larger units with more amenities
- Less demand for very small “shoebox” condos, once popular with investors
- Strong demand for two- and three-bedroom units, particularly for families and shared-living households
CMHC expects more tenants to seek larger rental homes as co-living arrangements become more common. Smaller units may face more difficulty attracting renters.
Ab Iorwerth anticipates an increase in lifelong renters in expensive cities such as Toronto and Vancouver. While short-term declines in rent may offer brief relief, they also risk suppressing new development, potentially leading to another affordability crunch within a few years. His forecast suggests Toronto could face renewed pressure by 2026 or 2027, while other markets may move toward a more balanced supply-demand outlook.
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