07/03/2025
Canadian Renters' Path to Homeownership: Provincial Insights
Across Canada, more than one in four renters considered buying a home before signing their current lease. However, the journey to homeownership remains complex, with regional variations shaping renter behavior and affordability.
➡️ Ontario: Renters Watching for Market Shifts
In Ontario, 28% of renters reported considering buying a property before signing or renewing their lease.
Key barriers included:
43% waiting for home prices to decline
34% waiting for further interest rate cuts
34% unable to qualify for a mortgage or financing
Homeownership Outlook:
55% plan to buy a home in the future
15% plan to buy within 2 years
21% plan to buy within 2–5 years
31% do not plan to buy, citing:
Income constraints (50%)
Perceived affordability of renting (43%)
Reluctance to maintain a property (43%)
Rental Market Trends:
Toronto rents have softened:
1-bedroom average: $2,302 (-7.1% YoY)
2-bedroom average: $2,933 (-10.7% YoY)
Ottawa’s market is more stable:
1-bedroom average: $1,994 (flat YoY)
2-bedroom average: $2,559 (+2.4% YoY)
Affordability Pressure:
38% spend 31–50% of net income on rent
15% spend more than 50% on rent
39% are cutting grocery budgets to afford rent
Outlook:
More supply is expected in the short term, but developers are scaling back for future years. Renters currently have more negotiating power, but this may not last.
➡️ Quebec: Strong Aspirations, Strategic Waiting
In Quebec, 31% of renters considered buying before renewing their lease. Key reasons for renting:
37% waiting for home prices to drop
27% waiting for lower interest rates
27% renting to save for a down payment
Homeownership Outlook:
56% plan to buy a home
16% within 2 years, 23% within 2–5 years
32% do not plan to buy, due to:
Income constraints (50%)
Maintenance avoidance (41%)
Renting perceived as more affordable (35%)
Rental Market Trends:
Montreal rents are easing:
1-bedroom average: $1,727 (-2.0% YoY)
2-bedroom average: $2,255 (-2.6% YoY)
Affordability Pressure:
37% spend 31–50% of net income on rent
Only 8% spend more than 50% (lowest in Canada)
31% are cutting food budgets to afford rent
Outlook:
Quebec remains more affordable than other provinces. Homeownership remains a priority, but renters are pacing themselves, waiting for better conditions.
➡️ British Columbia: Renting to Save, Buying Remains a Goal
In British Columbia, 21% of renters considered buying before signing their lease.
Key factors for continuing to rent:
44% saving for a down payment
42% waiting for home prices to drop
26% unable to qualify for financing
Homeownership Outlook:
53% plan to buy a home
16% within 2 years, 19% within 2–5 years
26% do not plan to buy, primarily due to:
Income constraints (66%)
Renting perceived as more affordable (53%)
Reluctance to maintain a home (33%)
Rental Market Trends:
Vancouver rents are softening:
1-bedroom average: $2,544 (-4.8% YoY)
2-bedroom average: $3,358 (-7.4% YoY)
Affordability Pressure:
36% spend 31–50% of net income on rent
23% spend more than 50%
45% are cutting grocery budgets to afford rent
Outlook:
Vancouver’s rental market has reached a rare moment of balance, but price declines may have bottomed out. Renters are currently in a strong negotiating position.
➡️ Alberta: Canada’s Most Eager Potential Buyers
In Alberta, 34% of renters—the highest among provinces—considered buying before signing their lease.
Key barriers:
38% waiting for home prices to drop
28% unsure about employment stability
27% undecided on property type or location
Homeownership Outlook:
58% plan to buy a home
21% within 2 years, 23% within 2–5 years
29% do not plan to buy, citing:
Income constraints (49%)
Reluctance to maintain a property (35%)
Renting perceived as more affordable (27%)
Rental Market Trends:
Calgary rents are adjusting:
1-bedroom average: $1,591 (-8.2% YoY)
2-bedroom average: $1,944 (-9.2% YoY)
Edmonton rents are stabilizing:
1-bedroom average: $1,336 (-2.3% YoY)
2-bedroom average: $1,679 (-0.7% YoY)
Affordability Pressure:
35% spend 31–50% of net income on rent
18% spend more than 50%
50% are cutting grocery budgets to afford rent
Outlook:
Calgary’s rental market remains competitive, particularly for larger homes. Migration to Alberta continues to fuel demand.
➡️ Saskatchewan & Manitoba: Affordability Still Drawing Renters
In Saskatchewan and Manitoba, 28% of renters considered buying before signing their lease.
Key barriers:
53% renting to save for a down payment
48% waiting for prices to drop
38% unable to qualify for financing
Homeownership Outlook:
53% plan to buy a home
19% within 2 years, 21% within 2–5 years
36% do not plan to buy, citing:
Income constraints (56%)
Renting perceived as more affordable (49%)
Reluctance to maintain a property (34%)
Rental Market Trends:
Regina rents are rising:
1-bedroom average: $1,262 (+0.2% YoY)
2-bedroom average: $1,576 (+3.9% YoY)
Winnipeg rents are steady:
1-bedroom average: $1,443 (+1.9% YoY)
2-bedroom average: $1,762 (-0.2% YoY)
Affordability Pressure:
34% spend 31–50% of net income on rent
14% spend more than 50%
48% are cutting grocery budgets to afford rent
Outlook:
With new purpose-built rentals on the rise, rental inventory is expected to grow, though steady population increases will continue to support demand.
➡️ Atlantic Canada: Renters Facing the Greatest Strain
In Atlantic Canada, 16% of renters considered buying before signing their lease—the lowest rate nationally.
Homeownership Outlook:
45% plan to buy a home
9% within 2 years, 16% within 2–5 years
Rental Market Trends:
Halifax rents remain high:
1-bedroom average: $2,064 (+7.2% YoY)
2-bedroom average: $2,623 (+5.4% YoY)
Affordability Pressure:
27% spend 31–50% of net income on rent
31% spend more than 50% (highest in Canada)
53% are cutting grocery budgets to afford rent
Outlook:
Vacancy rates are improving, and tenants now have more selection. However, demand remains strong for central, affordable units. Many landlords are offering incentives to attract renters to larger or higher-end units.
https://qrealestategroup.ca/post/Provincial-Insights
