Many Canadians are turning to single-family rentals as homeownership remains out of reach for many.

With rising mortgage costs and changing lifestyle preferences, Canadians are increasingly considering renting as a long-term option rather than just a temporary step towards homeownership.

A recent study by Point2Homes reveals a significant shift in how Canadians perceive renting, with more individuals opting for single-family rentals over apartments for the space and stability they offer.

Renting is now a more permanent choice

Between 2016 and 2021, Canada saw an increase of nearly 500,000 new renter households, pushing the national renter rate above 33%, the highest it has ever been. This trend indicates a fundamental change: houses originally built for owners are now becoming the backbone of Canada’s rental inventory.

Single-family rental households grew by 14.7%, surpassing the 9.4% growth in traditional multi-unit apartment rentals, signaling a preference among many Canadians for homes with more space and amenities.

According to Statistics Canada, over 40% of homes constructed between 2016 and 2021 were occupied by renters during the last Census, marking the highest tenant rate since the 1960s.

This trend is particularly noticeable in Montréal, where renters occupy 55% of homes built within that five-year period.

Urban dwellers also seek space

The popularity of single-family rentals extends beyond the suburbs. Canada’s major cities are leading the way in the shift towards house rentals, as highlighted in the report.

Ottawa, Calgary, and Toronto each saw an addition of over 8,800 single-family rental households between 2016 and 2021, as residents sought the comfort and privacy of a detached home without the hefty price tag of ownership.

Ontario at the forefront

The surge in house rentals is most pronounced in Ontario, home to eight of the top ten fastest-growing cities for single-family rental households.

Markham leads the list with a nearly 70% increase in single-family rentals, followed closely by Richmond Hill, Oakville, and Newmarket.

Solo renters driving demand

Single Canadians are driving this evolution. One-person single-family rental households have surged by 19.6%, almost double the growth seen in solo apartment renters, indicating a growing preference for space and privacy even when living alone.

This suggests that individuals are increasingly prioritizing space and privacy, even when living alone.

Reimagining “home” in Canada

As homeownership becomes less feasible for many, renting is becoming the preferred choice for those seeking stability and comfort, as outlined in the report. In this changing landscape, single-family rentals are not just bridging a housing gap; they may be shaping the future of Canadian living.