Yardi Canada's report shows easing competition in rentals, but affordability and supply remain key issues
Yardi Canada released its Q1 2025 multifamily report, providing insights into key trends that shaped the Canadian apartment market in the final quarter of 2024.
Based on anonymized data from over 492,000 units across 5,500 properties, the report identifies rising vacancy rates, slowing rent growth, and persistent affordability challenges.
The report reveals that national vacancy rates increased to 3.6 percent, marking the highest level since 2020. Bachelor units experienced the most significant increases in vacancies.
The annual turnover rate rose slightly to 23.1 percent, which remains historically low and indicates steady demand in the rental market.
Meanwhile, national apartment completions climbed by 28.2 percent year-over-year, with 63,000 units completed through the first three quarters of 2024. During the same period, apartment starts grew by 20.3 percent to 68,000 units, reflecting ongoing activity in residential construction.
Peter Altobelli, vice president and general manager of Yardi Canada, described the developments as reflecting shifting dynamics in the country’s rental market.
He stated, “The increase in vacancy rates and moderation of rent growth signal a significant shift in Canada's rental market dynamics.”
Altobelli added that while these trends suggest some easing of competition, affordability challenges remain, emphasizing the need for collaboration between developers and policymakers to address renters’ evolving needs.
As Canada’s rental market enters 2025, some relief from the competitive pressures of recent years is becoming apparent.
However, the report emphasizes that affordability and supply constraints continue to present significant challenges.
Although easing inflation and lower interest rates offer opportunities for renters and developers, slower immigration growth and high development costs remain key factors influencing the market.
