Canada's Rental Market at a Crossroads: Vacancy Rates Surge, Rent Growth Slows

Rent growth slows, vacancies stay low, supply struggles to catch up.

TORONTO, Jan. 22, 2025 /CNW/ -- Yardi® Canada has released its latest multifamily report for Q1 2025, offering insights into the trends that shaped Canada's apartment market during Q4 2024. Drawing on anonymized data from over 492,000 units across 5,500 properties, the report highlights rising vacancy rates, slowing rent growth and persistent affordability pressures for renters.

As the Canadian rental market enters 2025, some relief from intense competition is emerging, but affordability and supply constraints remain critical challenges. While lower interest rates and easing inflation provide opportunities, slower immigration growth and high development costs continue to shape the landscape.

Key Findings from the Q1 2025 Report:

• Vacancy Rates Rise: National vacancy reached 3.6%, the highest since 2020, with bachelor units seeing the largest increases.
• Turnover Edges Higher: The annual turnover rate rose slightly to 23.1% but remains historically low, reflecting steady rental demand.
• Unit Completions Climb: Through three quarters of 2024, national apartment completions rose 28.2% year-over-year to 63,000 units, while starts increased 20.3% to 68,000 units.

Peter Altobelli, vice president and general manager of Yardi Canada, commented:
"The increase in vacancy rates and moderation of rent growth signal a significant shift in Canada's rental market dynamics. These trends suggest some easing of the intense competition we've seen in recent years, but affordability challenges remain at the forefront. Collaborative efforts between developers and policymakers will be critical in addressing the evolving needs of renters across the country."

For a deeper analysis of the Q4 data, download the full report here.

About Yardi

Celebrating 40 years of innovation, Yardi® develops industry-leading software for real estate companies worldwide. With over 9,000 employees, Yardi is dedicated to driving innovation and helping clients succeed in the real estate industry. For more information, visit yardi.com.

Media Contact:
Turner Levison
Yardi Systems, Inc.
(678) 642-7532
[email protected]

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SOURCE Yardi