Is now the right time to buy? It’s a complicated question. On one hand, rent is at a historic low; on the other, property prices have dropped, and inventory is high, giving buyers a rare opportunity to find deals. Despite these favorable conditions, becoming a first-time homebuyer is often not as easy as it seems. To help Canadians make the best decision, Zoocasa analyzed the buy-versus-rent math across 30 markets.
It’s Cheaper to Buy Than Rent in These Two Cities
While the national narrative often highlights the high cost of homeownership, there are still pockets in the Canadian real estate market where paying a mortgage is actually cheaper than paying rent. Regina and Winnipeg are the only two cities in the data where homeownership yields immediate monthly savings. In Regina, a monthly mortgage payment is $120 less than the average rent, while in Winnipeg, homeowners pay $92 less than their renting counterparts.
It’s also worth noting that Edmonton is a significant outlier close to this trend. While renting is technically cheaper there, the difference is incredibly slim, just $85 a month. For many prospective buyers in Edmonton, this marginal difference suggests that the leap from renting to owning is far more accessible than in the rest of the country. Outside these three cities, renting remains the more affordable monthly option, though the savings vary widely by region.
Why the Leap from Renting to Owning is Getting Harder
In cities like Red Deer, Saskatoon, and Halifax–Dartmouth, the financial benefit of renting is minimal. The savings for renters in these markets range from roughly $100 to $270 per month.
As we look at larger urban centers, the gap widens. In cities like Ottawa, Montreal, and Calgary, renters save between $400 and $450 monthly. Moving into Southern Ontario hubs like Waterloo and Hamilton, the gap widens, with rental savings approaching $1,000.
Meanwhile, in the Greater Toronto Area and parts of British Columbia, the disparity becomes a canyon. In cities like Mississauga, Brampton, and Victoria, renting is substantially cheaper, with monthly savings exceeding $1,000.
Spotlighting Ontario’s Tech Bubble
Nowhere is the disconnect between local rents and home prices more visible than in Waterloo. When compared to other major Ontario university cities, the “Tech Hub Effect” becomes obvious.
On the other hand, in Kingston, the gap between renting and owning is a modest $226 per month. In London, it’s $416. However, in Waterloo, that gap jumps to $781 per month.
This disparity suggests that Waterloo’s booming tech sector has driven asset prices (and, consequently, mortgage payments) up much faster than the local rental market can keep pace. While it is a university town like the others, the premium to own a piece of the “Silicon Valley of the North” is nearly double that of its academic counterparts.
The $650,000 Tipping Point
When analyzing the gap between renting and buying across the country, a clear “value cliff” emerges once average home prices cross the $650,000 threshold.
In markets where home prices range from $460,000 to $630,000, such as London, Ottawa, and Lethbridge, the monthly savings for renters remain moderate, typically between $300 and $400. However, once home prices tick slightly higher into the $670,000 to $740,000 range, the financial penalty for owning spikes disproportionately.
Cities like Cambridge, Barrie, and Oshawa sit just above this price threshold, yet the gap nearly doubles to $735-$923 per month. This suggests that while rental rates scale gradually, mortgage costs accelerate aggressively once you leave the affordable mid-market, creating a much steeper barrier to entry for upgraders.
Alberta’s Affordability, Low Price to Rent Ratio
Alberta cities consistently demonstrate affordability, with a much narrower gap between renting and buying than in markets in Ontario or British Columbia. Red Deer and Airdrie offer particularly tight margins, where renters save only $114 and $144 per month, respectively. Lethbridge follows with a slightly wider margin, where renters save $382. Even Calgary, despite its status as a major economic hub, maintains a modest gap of $433, a figure remarkably consistent with Montreal’s $434 and far below the prohibitive costs seen in other major Canadian metropolitan areas.
The Widest Gaps in British Columbia
In stark contrast to its neighbour, British Columbia defines the other end of the spectrum. The province is home to some of the widest disparities between renting and owning, driven by high property values that have outpaced rental rates.
In Victoria, renters save a significant $1,413 per month compared to mortgage holders. However, on the mainland, the numbers become even more extreme.
Meanwhile, Surrey and Vancouver are among the hardest markets for first-time buyers to enter. In Surrey, the monthly cost to own is $1,957 higher than the monthly cost to rent. In Vancouver, that premium rises to $2,011. In these markets, renters have a massive cash-flow advantage, saving roughly $24,000 a year compared to their home-owning neighbours.
Finally, the disparity reaches its peak in Canada’s most exclusive markets. In these three cities, the premium paid for homeownership is staggering, often reflecting average home prices that exceed $1.1 million.
Currently, Oakville has the largest disparity in the nation. The average monthly mortgage payment here is a massive $2,240 higher than the average rent. And in Vancouver, homeowners pay $2,011 more per month than renters. Surrey follows closely behind, offering a rental advantage of $1,957 per month, highlighting the steep costs of ownership in the Lower Mainland. In these high-cost markets, while the equity gains from ownership are significant, the day-to-day cash flow requirements of a mortgage far outstrip the cost of leasing.
Methodology: The average home prices were sourced from local real estate boards and CREA November data. Rents were sourced from rentals.ca. The analysis applies a standard 25-year amortization and a 3.89% interest rate (sourced from Ratehub’s 5-year fixed closed rate). The mortgage calculator uses a monthly mortgage payment and a 20% down payment.
With that being said, if you’re planning to enter the market this year, the best strategy is to partner with a local real estate agent. They can help you navigate these shifting conditions and ensure you find the right opportunity in an ever-changing landscape.
Whether you’re buying or renting, the right real estate agent will help you navigate your next move with confidence. Start your search today.
