Royal LePage 2024 Canadian Renters Report: Key Insights and Regional Comparisons

The Royal LePage 2024 Canadian Renters Report, released this June, provides a comprehensive overview of the rental market across Canada, focusing on regional trends and the intentions of renters regarding home ownership. 

Renters’ Transition to Home Ownership

According to the report, a noteworthy 27% of renters across Canada plan to purchase a property within the next two years. Younger renters aged 18-34 are even more interested, where 40% express a desire to buy. However, a substantial 69% of renters have no immediate plans to transition to home ownership, citing financial barriers as the primary reason. Over half (54%) believe their income is insufficient to afford a suitable property; this rises to 61% among younger adults.

Regional Variances

Rental Supply and Vacancy Rates

The report also highlighted regional differences in rental costs and supply, which investors and other stakeholders should be aware of. 

Vacancy rates across the country remain very low. The Canadian Mortgage and Housing Corporation (CMHC) reports vacancy rates of 1.5% for purpose-built rentals and 0.9% for condominium apartments. 

British Columbia’s rental market is exceptionally tight with higher rents. A significant proportion of renters face high rent-to-income ratios. Similarly, in Toronto, 19% of renters spend more than half their income on rent, compared to 10% in Montreal.

The low vacancy rates and high demand for rental properties offer landlords rental income stability, but may also limit growth opportunities due to the competitive market. 

Renters’ Buying Considerations 

The report reveals that 29% of Canadian renters contemplated purchasing a property before signing or renewing their lease, but 41% were deterred by the lack of a sufficient down payment. This pattern is consistent across regions, although motivations and economic conditions vary. 

For example, in Ontario, 30% of renters considered buying before leasing, with 47% citing insufficient down payment as a barrier.

In Atlantic Canada, despite a 28% contemplation rate for buying before renting, only 22% plan to purchase within the next two years, with many continuing to rent while saving for a down payment. This indicates potential opportunities for real estate investors and developers in providing affordable housing solutions and exploring flexible financing options.

Regional Breakdown as of October 2023:

Atlantic Canada

Halifax 

• Average Rent (Two-Bedroom Unit): 11.0% increase year-over-year.
• Vacancy Rate (Purpose-Built Rentals): 1.0%.

Quebec

Montreal 

• Average Rent (Two-Bedroom Unit): 7.9% increase year-over-year.
• Vacancy Rate:
  • Purpose-Built Rentals: 1.5%.
  • Condominium Apartments: 1.3%.

Ontario

Toronto 

• Average Rent (Two-Bedroom Unit): 8.7% increase year-over-year.
• Vacancy Rate:
  • Purpose-Built Rentals: 1.5%.
  • Condominium Apartments: 0.7%.

Ottawa 

• Average Rent (Two-Bedroom Unit): 4.0% increase year-over-year.
• Vacancy Rate:
  • Purpose-Built Rentals: 2.1%.
  • Condominium Apartments: 0.4%.

Manitoba and Saskatchewan

Winnipeg 

• Average Rent (Two-Bedroom Unit): 4.4% increase year-over-year.
• Vacancy Rate:
  • Purpose-Built Rentals: 1.8%.
  • Condominium Apartments: 1.8%.

Regina 

• Average Rent (Two-Bedroom Unit): 7.9% increase year-over-year.
• Vacancy Rate:
  • Purpose-Built Rentals: 1.4%.
  • Condominium Apartments: 1.8%.

Alberta

Calgary 

• Average Rent (Two-Bedroom Unit): 14.3% increase year-over-year.
• Vacancy Rate:
  • Purpose-Built Rentals: 1.4%.
  • Condominium Apartments: 1.0%.

Edmonton 

• Average Rent (Two-Bedroom Unit): 6.4% increase year-over-year.
• Vacancy Rate:
  • Purpose-Built Rentals: 2.4%.
  • Condominium Apartments: 2.5%.

British Columbia

Vancouver 

• Average Rent (Two-Bedroom Unit): 8.6% increase year-over-year.
• Vacancy Rate:
  • Purpose-Built Rentals: 0.9%.
  • Condominium Apartments: 0.9%.

Victoria 

• Average Rent (Two-Bedroom Unit): 7.9% increase year-over-year.
• Vacancy Rate (Purpose-Built Rentals): 1.6%.

Joanna Gerber