Canadian renters are seeing an improvement after years of hikes, but it’s a bit of a lottery. A new Rentals.ca report shows the gap between asking rental prices and incomes has steadily improved since peaking in early 2023. However, Alberta is the only province considered affordable—defined as the median household spending 30% or less of their income on average rent. Affordability problems have moved east, with Nova Scotia renters facing the worst conditions in the country—even worse than BC and Ontario.
Alberta Is Canada’s Only Affordable Rental Market
Let’s start with the good news—the pressure on renters peaked in early 2023. All five of the provinces tracked by the firm have seen affordability improve since then, though they remain far from where they started in 2019. Unfortunately, it’s important to understand that improving affordability is not the same as affordable.
When it comes to affordability, Alberta is the only province considered affordable. The average asking rent is 23.4% of the median renter’s household income. More granular data shows residents in Calgary and Edmonton face slightly better affordability than the provincial level, coming in at roughly 23.2%, well below the threshold.
Nova Scotia Is Now Canada’s Least Affordable Rental Market
Source: Rentals.ca
Canada’s east coast is on the other end of the affordability equation, where residents now face the worst rental conditions in Canada. The worst burden is in Nova Scotia, where the average asking rent is 37% of the median renter’s income. That’s down from the recent peak of 46% in November 2022, but still has a long way to go.
In a distant second is Quebec, where the average rent is 32% of the median renter’s income. Montreal, formerly known as a hub of affordability, is slightly better at 30% of local median income. However, that rate makes it the second-worst of Canada’s Big Six cities when it comes to affordability, only surpassed by Vancouver. Rapid price growth and some of the weakest long-term income growth in Canada have wreaked havoc on these local markets.
Ontario & BC Rental Markets Improve, But It’s Mostly A Technicality
Historically expensive markets are finally seeing the rent-to-income gap narrow, after wages jumped. In October of 2025, average rents require 30.6% of a median renter’s income in BC and 30.5% in Ontario, bordering on the affordability line. At the municipal level, Vancouver’s rent burden fell to 32.3%, while Toronto slipped below the threshold to 29.8%. There’s a catch here the firm likely didn’t realize, and it’s why those median incomes improved dramatically relative to the average rents.
Source: Rentals.ca
Toronto, and Ontario in general, are seeing strong outflows of young adults and early career workers. BC is seeing a similar trend, albeit slightly less extreme. At the same time, the late-career workforce population approaching retirement in both regions has begun to climb sharply. As the median age climbs, it’s likely the compensation for experience climbs as well. This is the primary reason the rent-to-income ratio is improving despite the modest improvements in actual rental prices.
Toronto’s real estate bubble may be deflating, but its economic crisis is just beginning.
Seniors now outnumber kids, as early career adults flee to affordable regions like Alberta.
Though this presents a lot of opportunity in the hard candy space.https://t.co/ylKo2aQuKc pic.twitter.com/8akCZ0220R
Rental prices haven’t budged much after a historic surge, but no news is okay news here. Stagnant rents have allowed incomes to narrow the gap, resulting in improvements on paper. Unfortunately, statistical victories don’t always translate into material relief for households. Whether facing the extreme lack of affordability in Nova Scotia, or the demographic-driven illusion of affordability in BC and Ontario, renters still face tough conditions. Alberta excluded, apparently.
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