Real estate professionals across Canada's largest housing markets are shifting their business models toward rental services as home sales continue to decline and leasing activity reaches unprecedented levels.
The trend is most pronounced in Toronto and Vancouver, where agents report that rental transactions now rival or exceed traditional property sales in their day-to-day operations.
Toronto Sees Dramatic Rental Surge
In the Greater Toronto Area, condo lease transactions jumped 19.7 per cent year-over-year in the first quarter of 2024, reaching 12,541 transactions according to the Toronto Regional Real Estate Board (TRREB). By late 2025, industry data showed approximately three lease agreements for every property sale across both the 416 and 905 areas.
The shift represents a dramatic change from just a few years ago when sales and leasing activity maintained near parity in the region.
Toronto real estate agent Arun Kumar experienced the transition firsthand. "2025, I had a lot more leases under my belt than prior years," Kumar said. "I think people are indecisive and given the economic and political outlook, postponing a buy decision seems less risky for many of them."
Kumar maintains relationships with rental clients, hoping they will eventually transition to homebuyers. "I do stay in touch with the tenants who I hope will become first-time homebuyers soon."
Vancouver's Structural Market Changes
While Toronto's rental boom largely responds to slower resale activity, Vancouver's market transformation appears more fundamental and long-term.
Canada Mortgage and Housing Corporation data indicates Metro Vancouver's vacancy rate has increased to approximately 1.6 per cent. Though still below the balanced market threshold of three per cent, the increase signals meaningful change in rental supply dynamics.
The region experienced its strongest expansion of purpose-built rental housing in decades during 2024 and 2025, with thousands of new units entering professionally managed buildings. This increased supply has moderated rent growth and created more competitive leasing conditions.
For many Vancouver residents, renting has evolved from a temporary housing solution to a permanent lifestyle choice, as homeownership remains financially unattainable.
Strategic Business Adaptation
Real estate professionals view the rental focus as a strategic adaptation rather than a temporary pivot. Toronto agent Mike Petrant considers lease work essential to maintaining client relationships and market presence.
"I've always been a big proponent of taking on lease work," Petrant explained. "It's not a way to earn a living but it does allow me to stay busy, add value to clients and keep my skills sharp."
Industry observers note that homeowners who secured ultra-low mortgage rates between 2020 and 2022 are remaining in their properties longer, while investors reassess condominium exposure and first-time buyers exercise increased caution.
For agents operating in these challenging markets, developing leasing expertise, landlord relationships, and rental advisory capabilities has transitioned from supplementary work to core business competencies.
Calgary's real estate market, while experiencing its own unique dynamics, may offer lessons for agents adapting to changing market conditions. Local resources like CalgaryFinder.com continue to provide comprehensive property data and neighbourhood insights for both sales and rental markets across the region.
This article is based on reporting by Canadian Mortgage Trends. For the original story, visit Canadian Mortgage Trends.
