What do Ontario's tenant demographics look like?

The Ontario rental market is complex and dynamic. Demographics are changing, and migration patterns in Ontario are shifting with evolving housing needs. Understanding tenant demographics in 2024 is important to landlords and property managers alike.

At Royal York Property Management, we know that in order to offer the best housing solutions to our clients, we need to keep up with these trends. Guiding landlords and property managers across Ontario through the complexities of the rental market, we maintain more than 22,000 properties valued in excess of $10.1 billion.

Key Demographic Trends  

Population Growth  

According to the Ontario Demographic Quarterly, Ontario's population continues to grow strongly, with growth due to natural increases and immigration. As of January 1, 2024, the population of this province was 14.8 million residents. In particular, there was a 42.6% one-year increase in non-permanent residents, reaching 1,204,736 people. These new arrivals make a great contribution to shaping the rental market—raising demand for different and affordable housing alternatives.

Migration Patterns  

The trends in migration patterns in Ontario have many dimensions, reflecting various demographic shifts.

Immigration: Ontario retains its magnetic effect on immigrants, attracting a lot of people from around the world for its economic opportunities, great quality of life, and family reunion programs. Movement into the region of skilled workers, international students, and refugees impacts the demand for housing, especially in urban centers.

Immigration: Ontario retains its magnetic effect on immigrants, attracting a lot of people from around the world for its economic opportunities, great quality of life, and family reunion programs. Movement into the region of skilled workers, international students, and refugees impacts the demand for housing, especially in urban centers.

Interprovincial Migration: Starting in 2020, Ontario started to see an exodus of people moving to other parts of Canada. This accelerated in 2023, with one demographic—twentysomethings—really heading for the exits. Last year, 14,100 more people in their 20s fled Ontario for other provinces and territories than headed in the other direction, at least double the number of net interprovincial migrations among other age groups. While it's not said outright that high rents are to blame, Ontario accounts for eight of the top 10 priciest cities for rent. For young people who changed provinces last year, Alberta was the most popular destination thanks to generally lower rents, although it experienced a significant year-over-year increase in rental rates.

Despite the outflow of young Ontarians, immigration is filling the gap, and then some. Last year, more than 40,000 immigrants in their 20s moved to Ontario. The influx of young immigrants has tilted the national age younger, with both the average and median age in Canada dipping slightly last year.

Rental Households 

The 2021 Census of Population indicates that in Ontario, there are 1.72 million rental households—an increase of 10.6% compared to 2016. It grows in line with the change in population during the same time period, which has created an enhanced need to offer various and numerous housing choices to satisfy the increasing renter base, from apartments and townhouses to single-family homes.

Demographic Segments  

Young Professionals and Students 

Young professionals are a major tenant segment, renting space close to job centers, amenities, and entertainment facilities. Condominiums and purpose-built rentals accommodate young professionals who insist on convenience and modern living space. The students bring their own contribution to the rental market, especially in university towns such as Toronto, Waterloo, and Kingston. Purpose-built student rentals and shared accommodations answer their needs specifically by offering a mix of affordability and accessibility to centers of education.

Immigrants and Newcomers  

Immigrants bring cultural diversity and a variety of housing preferences. While some want to live in cities for their amenities and ease of accessibility, others prefer suburban calm for a family-friendly environment. The challenges that each newcomer faces are, of course, unique to each and include the challenges of the rental process, their rights as tenants, and finding housing they can afford.

Seniors and Retirees 

With an aging population, Ontario demands more apartments or condos, as people usually move out of big houses. People prefer to have access to housing, be close to health facilities, and live in bustling communities that promote an active lifestyle. Retirees are searching for retirement homes and age-friendly neighborhoods where they will have a sense of community and can easily find amenities and services for their needs.

Regional Variations  

Greater Toronto Area (GTA) 

The GTA still remains a rent hot spot, whereby young professionals are found in Toronto's downtown core; suburbia offers a haven for families. Toronto's rental market is dominated by rentals in condos, as investors and developers continue to build high-rise towers in response to market demand. Areas such as Scarborough and North York experience consistent rental demand because of transit accessibility and associated amenities.

Other Ontario Cities  

Ottawa: With a robust government job market, universities, and an active cultural scene, the nation's capital sees steady rental growth. Demand for rental properties has stayed strong, with new developments continuing to pop up.

Hamilton: Known for its revitalization, Hamilton offers affordable rentals and attracts tenants toward its arts scene and proximity to Toronto. Transformation had given way to Hamilton being one of the places people feel well-suited for renting an affordable place with a balance of affordability and culture.

London: With Western University and Fanshawe College, London's rental market leans toward students and young professionals. The job market is just emerging, and educational institutions see that the demand for rental housing is alive and well.

Finally, ever-changing tenant demographics in Ontario, coupled with population growth, migration patterns, and changing housing needs, require landlords and property managers to adjust housing solutions to fit all needs. At Royal York Property Management, we are committed to helping landlords stay ahead of the curve by offering full-service property management, including tenant placement, rent collection, and 24/7 maintenance support. As we move into 2024, awareness about population shifts and housing preferences will remain key to a thriving rental market.

For more information on Royal York Property Management and our services, visit: royalyorkpropertymanagement.ca