Canadian apartment hunters are increasingly gravitating toward smaller markets, says a new RentCafe report.

Winnipeg and Saskatoon topped the list of the most in-demand multi-family rental home locations in the third quarter of 2024, according to RentCafe’s findings.

Prairie locations were among the most coveted. Meanwhile, Canada’s three largest cities, placed well below the top 10.

Toronto, Canada’s largest city ranked 20th with a score of 57.62 points.

“Toronto serves as an example that renter interest in Canada’s largest apartment markets may have plateaued,” noted RentCafe.

Vancouver and Montreal ranked 21st and 22nd, respectively.

To determine Canada’s top trending cities, RentCafe analyzed millions of interactions on its website, examining such factors as apartment availability, listing views, favourited apartments, and saved searches.

“High home prices and limited housing options continue to make renting the go-to option for many Canadians,” reported RentCafe. “As a result, renters across the country are consistently on the lookout for apartments that align with their budgets and lifestyles, even beyond the peak moving season.”

Winnipeg posted a perfect score of 100, driven by strong engagement from renters across Canada, including those from Toronto, Calgary, and Vancouver. The Manitoba capital’s appeal is rooted in its robust economy, which attracts apartment hunters nationwide, according to RentCafe.

Saskatoon ranked second with a score of 90.49, benefiting from a 27% increase in online traffic and a 34% rise in favourited listings year-over-year. According to RentCafe, Saskatoon’s renters primarily hail from nearby cities such as Winnipeg, Calgary, and Regina.

Edmonton secured third place with a score of 88.88 as the Alberta capital recorded the highest number of favourited apartments. Interest came largely from young professionals and families based in Vancouver, Toronto, and Calgary.

Victoria and Ottawa rounded out the top five, with both cities showing significant growth in favourited listings and online traffic.

Despite its seemingly low popularity, Toronto still ranked 15th for favourited listings, indicating that the market remained competitive for those actively searching. Similarly, Vancouver continued to attract high demand for listings, especially from nearby communities in spite of its low result.

As larger urban centres see demand slowing, smaller markets are growing in popularity. The Prairies’ popularity reflects renters’ pursuit of affordable living, quality of life, and better job prospects in regions outside traditional hubs, according to RentCafe.

Meanwhile, Montreal, despite its ranking as 22nd, still sees a surge in rental interest leading up to Quebec’s Moving Day on July 1.

The city’s population grew by 100,000 in 2023 alone, making quick rental decisions crucial in the tight market.

In addition to receiving demand from apartment hunters in the region, Montreal attracted prospective renters from Toronto, Ottawa and New York City.

Ontario was the most in-demand region as Ottawa (fifth), Kingston (eighth), London (ninth) and London (ninth) placed in the top 10

Although Calgary is often viewed as a vibrant multi-family market, the city placed 15th overall. But Calgary still ranked 10th in favourited listings. That suggests interested Calgary renters are “keen to secure a lease more quickly,” according to the report.

Most of Calgary’s interested out-of-province renters were based in Vancouver and Toronto when RentCafe compiled its data.

Toronto-based RentCafe assessed 25 cities across the country.

RentCafe is owned by Yardi Systems, a global property-management software company based in Santa Barbara, Calif. Yardi’s Canadian head office is in Toronto, and the company has a strong presence across the country.

Image: Courtesy of RentCafe