Join the Scotiabank StartRight® Program designed for Newcomers‡ and get up to $2,200* in value in the first year.
Written By
Corinna Frattini
Jun 7, 2024
•Housing
The cost of accommodation in Canada varies by city and vacancy rates are a key driver of costs. Housing costs are usually the largest portion of a monthly budget, and if you’re a newcomer to Canada, it’s helpful to understand what determines accommodation costs. With this knowledge, you can decide where you want to live and how much you can afford. Other factors that affect the accommodation costs include location, type of housing, and size.
In Canada, the vacancy rate refers to the housing supply and the occupancy rate refers to the housing demand. Though the answer is subjective, a healthy vacancy is considered to be around 3% in general.
The Canada Mortgage and Housing Corporation (CMHC) conducts the Rental Market Survey (RMS) every October in urban areas with populations of 10,000 and more. The RMS estimates the strength of the rental market. The survey targets privately rented structures with at least three rental units, that have been on the market for at least three months.
The CMHC also conducts the Condominium Apartment Survey (CAS) every year in September to estimate the strength of the condo apartment rental market. The cities covered in this survey are Calgary, Edmonton, Gatineau, Halifax, Hamilton, Kelowna, Kitchener, London, Montréal, Ottawa, Regina, Saskatoon, Toronto, Vancouver, Victoria, and Winnipeg.
A vacancy rate of two percent or lower means there is greater competition among prospective tenants as they vie for fewer vacant rental properties.
| VACANCY RATE | WHAT IT MEANS |
|---|---|
| Less than 2% | – High demand with a limited housing supply – Drives rental cost higher |
| 3% | – Healthy balance between housing supply and demand |
| Greater than 3% | – High supply with low demand – Lower housing costs – “Renter’s Market |
The vacancy rate is also a key factor determining the accommodation cost in cities across Canada. With this in mind, you can research vacancy rates to understand rental costs, determine how much you can afford, and budget for rent. Here are the 2023 vacancy rates and average rental rates for a 2-bedroom apartment in several Canadian cities:
| CITY VACANCY RATE | AVERAGE RENT FOR A 2-BEDROOM CONDOMINIUM APARTMENT |
|---|---|
| CANADA 0.9% | $2,049 |
| OTTAWA, Ontario 0.4% | $2,085 |
| VANCOUVER, British Columbia 0.9% | $2,580 |
| HALIFAX, Nova Scotia 1.0% | $1,628 |
| TORONTO, Ontario 0.7% | $2,862 |
| KITCHENER-CAMBRIDGE-WATERLOO, Ontario 0.1% | $** |
| CALGARY, Alberta 1.0% | $1,819 |
| REGINA, Saskatchewan 1.8% | $1,421 |
| LONDON, Ontario 0.1% | $2,050 |
| SUDBURY, Ontario 1.2% | $1,361 |
| WINNIPEG, Manitoba 1.8% | $1,333 |
| WINDSOR, Ontario 2.0% | $1,253 |
| SASKATOON, Saskatchewan 2.0% | $1,449 |
| EDMONTON, Alberta 2.5% | $1,359 |
| HAMILTON, Ontario 2.6% | $2,373 |
| ST. CATHARINES-NIAGARA, Ontario 2.8% | $1,388 |
Finding affordable housing continues to be challenging, especially in Toronto and Vancouver where vacancy rates are below two percent. That’s why we encourage newcomers to consider other cities that often offer hidden advantages to newcomers, including lower accommodation costs.
Housing affordability and supply are essential factors when evaluating your landing city options. In Canada, spending less than 30% of your pre-tax income on housing is considered affordable. Spending more than 30% on housing will mean cutting into your budget for things like food, transportation, and other necessities. And, until you establish stable finances, it’s wise to manage your budget and expenses accordingly.
Major cities like Toronto and Vancouver are expensive when it comes to accommodation. However, you’ll likely find housing prices that are more in line with your budget in other Canadian cities. Carefully researching small and mid-sized cities across Canada before you choose your landing city is the key to your success.
It’s important to research housing and job markets across Canada. Canada is a vast country with regional, economic, and cultural differences. And, the cost of housing (both in the rental and homebuying markets) can vary widely. At the same time, you want to research your profession in different cities to ensure job opportunities match your skills, knowledge, and experience.
This initial research is critical. While you can always relocate to other cities, making a secondary move is expensive. Carefully evaluating your landing city options, housing costs, and career options will help you make smart decisions and achieve financial stability and success! You can easily check out rental costs in cities across Canada at Rentals for Newcomers.
The cost of living can vary across Canada. Groceries, transportation, rent, or home-buying costs can be expensive. Also, consider your lifestyle and the cost of entertainment and dining out.
Considering all of these factors will help you to budget for the cost of accommodation in Canada. And for newcomers, this information can help you to make smart and affordable landing city decisions!
WRITTEN BY
Corinna Frattini
Senior Editor, Prepare for Canada
Corinna Frattini is the Senior Editor and Content Director for Prepare for Canada. She contributes articles to help newcomers achieve their goals in key areas related to living, working, and settling in Canada. With an extensive background in human resources and leadership development, her articles focus on what Canadian employers seek and how newcomers can continue their careers in Canada.
© Prepare for Canada 2025
Protected: Is Now A Good Time to Buy a Home in Canada? Insights for Newcomers
How Can Newcomers Avoid Rental Scams? 10 Smart Tips
Children Sharing Bedrooms in Canada: Rules and Guidelines
How Can I Find Short-Term Rentals in Canada?