Rentership boom across Canada brings more tenants and demand than ever before

According to the latest Canadian census, there are almost 1 million more renter households now than a decade ago — to unprecedented levels across all age groups. The city driving the trend is Montreal, according to a recent Point2 study that analyzed renter levels in Canada’s 50 largest cities.

Besides financial savings from renting vs owning in some higher-priced locales, there is a mix of reasons for the increased renter numbers, including higher immigration, an aging population, the popular preference to live maintenance-free and relocations to job centres.

A record number of tenants, with millennials & baby boomers the largest groups

Canada is experiencing a significant increase in its number of renters, with 33.4 per cent of households now renting — the highest percentage ever recorded. Young millennials and baby boomers are the largest groups contributing to this trend.

Recent initiatives like the Canadian Renters’ Bill of Rights and new housing aid funds try to support renters amid low vacancy rates and high demand. Over 40 per cent of homes built between 2016 and 2021 are now rented, marking the highest tenant rate in decades.

Cities with the highest shares of renters

Montreal leads with the largest share of renters — over 63 per cent of households there rent, more than double the national average. In Vancouver, over 54 per cent of households rent due to high home prices, while Sherbrooke, Quebec offers more affordable rental options (less than $1,500 even downtown).

Of the country’s largest cities, Toronto is home to the highest number of renter households (551,290) but has the fifth-largest share of tenants (48 per cent). Kingston, with its large student population, sees nearly 93 per cent of under-24-year-olds renting, while Montreal remains attractive to Gen Z.

Growth in rentership across major cities

Richmond, B.C., saw the most significant increase in renters, rising from 17.6 per cent to 28.7 per cent. Ontario cities like Waterloo and Markham also saw increased rentership. In contrast, Richmond Hill experienced a decrease in renters despite high home prices and incomes, indicating a preference for homeownership among families.

Renting is particularly popular among younger demographics, with over 81 per cent of those under 24 years old and more than half of 25-to-34-year-olds renting. There’s also an increase in Baby Boomer renters.

The growth in rentership in Canada highlights ongoing shifts in lifestyle and demographics. With the extension of the ban on foreign ownership and an expected rise in newcomers, the demand for rental housing is more pressing than ever.

Review the full study here.