As we approach 2025, Canada’s rental property market continues to show robust growth fueled by immigration, urbanization, and demand for affordable housing. For investors, identifying cities with strong rental demand, economic growth, and favorable market conditions is critical for success. Below is a ranked list of the top 10 cities to buy rental properties in Canada in 2025 based on factors like rental yields, property prices, and population growth.
1. Calgary, Alberta
Why Invest:
- Economic Growth: Calgary’s diversified economy, bolstered by technology and renewable energy sectors, makes it an attractive investment hub.
- Affordable Real Estate: Despite steady appreciation, Calgary remains more affordable than cities like Vancouver or Toronto.
- High Rental Demand: A large influx of migrants and workers has spiked rental demand.
Key Stats:
- Average Home Price (2024): $570,000
- Average Rent for 2-Bedroom Apartment: $2,200/month
- Rental Yield: ~4.6%
2. Halifax, Nova Scotia
Why Invest:
- Population Growth: Atlantic Canada continues to attract newcomers due to its affordability and lifestyle.
- Strong Rental Market: Halifax has a growing student and young professional demographic.
- Government Incentives: Programs aimed at supporting new developments improve investor outlooks.
Key Stats:
- Average Home Price (2024): $470,000
- Average Rent for 2-Bedroom Apartment: $1,800/month
- Rental Yield: ~4.8%
3. Ottawa, Ontario
Why Invest:
- Stable Economy: Ottawa benefits from a steady influx of government employees and tech professionals.
- Rising Rents: Limited supply in 2024 has pushed up rental rates, benefiting landlords.
- High-Quality Tenants: A highly educated population ensures consistent demand.
Key Stats:
- Average Home Price (2024): $740,000
- Average Rent for 2-Bedroom Apartment: $2,600/month
- Rental Yield: ~4.2%
4. Edmonton, Alberta
Why Invest:
- Affordability: Edmonton offers some of the most affordable housing prices among major Canadian cities.
- Population Growth: Projections show a continued rise in newcomers drawn by its strong job market.
- Low Vacancy Rates: Tight rental supply drives up prices.
Key Stats:
- Average Home Price (2024): $440,000
- Average Rent for 2-Bedroom Apartment: $1,850/month
- Rental Yield: ~4.9%
5. Windsor, Ontario
Why Invest:
- Cross-Border Advantage: Windsor benefits from its proximity to the U.S., making it a strategic location.
- Booming Job Market: Growth in manufacturing and technology sectors boosts rental demand.
- Affordable Entry: Lower property prices make it easier for new investors to enter the market.
Key Stats:
- Average Home Price (2024): $450,000
- Average Rent for 2-Bedroom Apartment: $1,700/month
- Rental Yield: ~4.5%
6. London, Ontario
Why Invest:
- Growing Student Population: Home to Western University and Fanshawe College, London has consistent rental demand.
- Affordable Living: Relative affordability compared to nearby cities like Toronto.
- Development Projects: Urban expansion creates opportunities for investors.
Key Stats:
- Average Home Price (2024): $540,000
- Average Rent for 2-Bedroom Apartment: $2,100/month
- Rental Yield: ~4.7%
7. Moncton, New Brunswick
Why Invest:
- Rapid Population Growth: Moncton is one of Atlantic Canada’s fastest-growing cities.
- Affordable Properties: Among the lowest average home prices in Canada.
- Rising Rents: As demand rises, rents are climbing steadily.
Key Stats:
- Average Home Price (2024): $320,000
- Average Rent for 2-Bedroom Apartment: $1,500/month
- Rental Yield: ~5.6%
8. Vancouver, British Columbia
Why Invest:
- Global Appeal: Vancouver’s position as a global city ensures continuous demand for rentals.
- High Rents: Premium rental rates offset higher property prices.
- Strong Long-Term Appreciation: Despite high costs, Vancouver remains a solid long-term investment.
Key Stats:
- Average Home Price (2024): $1,280,000
- Average Rent for 2-Bedroom Apartment: $3,600/month
- Rental Yield: ~3.4%
9. Saskatoon, Saskatchewan
Why Invest:
- Economic Stability: A strong agricultural and resource-driven economy supports job growth.
- Low Cost of Living: Saskatoon’s affordability attracts families and young professionals.
- Growing Rental Market: Increasing population drives steady demand.
Key Stats:
- Average Home Price (2024): $390,000
- Average Rent for 2-Bedroom Apartment: $1,600/month
- Rental Yield: ~4.9%
10. Montreal, Quebec
Why Invest:
- Cultural Hub: Montreal’s diverse population and vibrant culture attract renters year-round.
- Affordable Compared to Toronto: While prices are rising, Montreal remains more affordable than Toronto or Vancouver.
- Consistent Rental Demand: Home to multiple universities and growing industries.
Key Stats:
- Average Home Price (2024): $590,000
- Average Rent for 2-Bedroom Apartment: $2,100/month
- Rental Yield: ~4.3%
How to Choose the Right City for You
When deciding on a city to invest in, consider the following:
- Market Dynamics: Look at rental yields, vacancy rates, and population trends.
- Long-Term Potential: Choose cities with sustainable economic growth.
- Your Investment Strategy: High-rent cities like Vancouver may suit those seeking long-term appreciation, while affordable markets like Moncton are ideal for cash flow investors.
Investing in rental properties in Canada in 2025 offers diverse opportunities. Whether you’re drawn to the booming economies of Alberta or the affordability of Atlantic Canada, careful research and planning can help you secure a profitable investment.
Disclaimer: The data in this article is based on market forecasts and averages from 2024. Always consult with a financial advisor or real estate expert before making investment decisions.
