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Is Now a Good Time to Rent vs. Buy in Canada?

After years of brutal rent hikes that left many Canadians feeling priced out of their own cities, something has quietly shifted: rents are finally falling. But does that mean you should lock in a lease and wait out the housing market — or is this actually the window you've been waiting for to buy? The answer, as always, depends on your city, your finances, and your plans. Here's a clear-eyed breakdown of where things stand in 2026. What's Happening With Rents Right Now The Canadian rental market has undergone a dramatic reversal. After vacancy rates hit record lows in 2023 and rents surged by as much as 8% nationally in a single year, the tide has turned. According to the Canada Mortgage and Housing Corporation (CMHC), the national vacancy rate for purpose-built rental apartments rose to 3.1% in October 2025 — up from 2.2% in 2024 and a record low of just 1.5% in 2023. That 3.1% figure now sits above the 10-year historical average , marking a meaningful shift in the bal...
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To Rent or Buy? Rental Costs Still Lower Than Buying in Most Markets

As rents continue to soar in Canada, many Canadians are left wondering whether it’s more cost-effective to rent or buy a home. Despite the surge in rental prices over the last two years, an analysis conducted by Zoocasa reveals that average monthly rental rates in most major markets across the country are still less than average monthly mortgage payments.

The Numbers: Renting vs. Buying

  • The average monthly rent for all property types in Canada was $2,174 in December, marking an 8.4% year-over-year increase.
  • In contrast, the average monthly mortgage payment for all property types was $3,253.
  • Zoocasa calculated average rent prices using data from Rentals.ca, combining the average price of one-bedroom and two-bedroom rentals. Average home price data were sourced from the Canadian Real Estate Association (CREA) and individual city real estate boards. Monthly mortgage payments were calculated using Ratehub.ca’s affordability calculator, assuming a 20% downpayment on a home of average price in each market, with a 25-year amortization and an interest rate of 4.84%.

Market Disparities

While the gap between renting and buying has narrowed, in Canada’s most expensive housing markets, it remains substantial. Here’s a snapshot

  1. Toronto: The average monthly rental in December was $2,918, compared to an average monthly mortgage payment of $4,888.
  1. Vancouver: The average monthly rent came in at $3,180, while the average monthly mortgage payment was $5,353.

However, some markets show a more favorable balance:

  • Quebec City: The difference between renting and buying was just $54 ($1,501 for average monthly rent vs. $1,555 for an average monthly mortgage payment).
  • Regina: The gap was $62 ($1,311 for average monthly rent vs. $1,373 for an average monthly mortgage payment).

Other markets with narrower gaps include Edmonton, Calgary, Saskatoon, Montreal, and Halifax. Surprisingly, Winnipeg is the lone market where the average monthly mortgage payment ($1,526) is slightly less than renting ($1,531).

Canada faces a housing affordability crisis driven by higher interest rates, housing supply shortages, and surging population growth. Shelter costs, including mortgage interest and rent, remain a significant driver of inflation. In December, shelter inflation increased by 6% year over year, according to Statistics Canada. Rent prices continued to rise, jumping 7.7% year over year.

In summary, while the rent vs. buy decision varies by location, renting still offers a more affordable option for many Canadians, especially in markets with sky-high home prices.


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