Canada rental market data
Canada’s rental market shifted meaningfully in 2025. After years of historically tight conditions, vacancy rates rose across every major metropolitan area as weaker demand from reduced immigration and a softer labour market coincided with increased rental supply from both new purpose-built completions and condominium apartments.
| Metric | October 2025 | Change |
|---|---|---|
| Vacancy rate (purpose-built apartments) | 3.1% | Up from 2.2% in Oct 2024 |
| Average 2-bedroom rent | $1,550 | +5.1% year-over-year |
| Condo apartment vacancy rate | 1.3% | Up from 1.0% in Oct 2024 |
| Average 2-bedroom condo rent | $2,305 | — |
“Softened market conditions eased rent pressures,” noted CMHC in their 2025 Rental Market Report. “Weak renter household formation and increased rental supply contributed to softened rental market conditions.”
For detailed city-level rental data, see our city and province pages below.
Rental market by city
- Toronto Rental Market — Ontario’s largest CMA
- Vancouver Rental Market — BC’s largest CMA
- Calgary Rental Market — Alberta’s largest city
- Edmonton Rental Market — Alberta’s capital
- Ottawa Rental Market — Canada’s capital
- Montréal Rental Market — Quebec’s largest CMA
- Winnipeg Rental Market — Manitoba’s capital
- Hamilton Rental Market — GTA spillover market
- Halifax Rental Market — Nova Scotia’s capital
- Victoria Rental Market — BC’s capital
- Saskatoon Rental Market — Saskatchewan’s largest city
- Regina Rental Market — Saskatchewan’s capital
- London Rental Market — southwestern Ontario
Rental market by province
- Ontario Rental Market
- British Columbia Rental Market
- Alberta Rental Market
- Quebec Rental Market
- Saskatchewan Rental Market
- Manitoba Rental Market
- Nova Scotia Rental Market
- New Brunswick Rental Market
- Newfoundland and Labrador Rental Market
- Prince Edward Island Rental Market
Vacancy rates by major city
Vacancy rates rose across all major Canadian census metropolitan areas in October 2025:
| City | Oct 2024 | Oct 2025 | Change | Avg 2BR Rent |
|---|---|---|---|---|
| Vancouver | 1.7% | 3.7% | ↑ 2.0 pp | — |
| Calgary | 3.3% | 3.3% | — | — |
| Edmonton | 3.4% | 3.4% | — | — |
| Toronto | 2.5% | 3.0% | ↑ 0.5 pp | $2,046 |
| Ottawa | 2.0% | 2.7% | ↑ 0.7 pp | — |
| Montréal | 1.8% | 2.9% | ↑ 1.1 pp | — |
| Halifax | 2.1% | 2.7% | ↑ 0.6 pp | $1,826 |
Purpose-Built Apartment Vacancy Rates — Major CMAs (October 2025)
Vancouver experienced the largest vacancy rate increase, rising to 3.7% — its highest level since 1988. Toronto hit 3.0% for the first time since the pandemic. Meanwhile, Calgary’s rate was unchanged despite substantial new rental supply, reflecting strong population-driven demand.
Key themes in Canada’s 2025 rental market
Rents for new tenants fell
After two years of strong increases, the average rent paid by new tenants (turnover rent) for two-bedroom units fell in most major centres. Exceptions included slight growth in Edmonton and Ottawa and ongoing increases in Montréal. Purpose-built landlords responded by offering incentives such as one month of free rent, moving allowances, and signing bonuses.
Rent growth persisted for sitting tenants
Despite softening, the average rent paid by all tenants for two-bedroom units still rose 5.1% nationally. About 40% of this increase came from tenant turnover — when units are re-priced at higher levels between tenancies. In Toronto and Vancouver, stricter rent guidelines limited increases for sitting tenants, making turnover a larger driver of rent growth.
Condominium apartments added competition
In Toronto and Vancouver, more condominium apartment owners moved units into the rental market. Weak housing ownership markets kept condo investors renting rather than selling. This added competitive pressure to the purpose-built rental segment, with landlords identifying condo rentals as a major obstacle to leasing new projects.
Lower immigration slowed demand
Population growth — a key driver of housing demand — slowed sharply as immigration policy changes reduced new arrivals. Ontario and British Columbia, popular destinations for international students, were hardest hit. The young adult population (15–34), the primary driver of rental household formation, declined in these provinces.
Purpose-built vs condominium rental market
Canada’s rental market is split between two segments: purpose-built rental apartments and rented condominium apartments.
| Segment | Vacancy Rate | Avg 2BR Rent | Universe |
|---|---|---|---|
| Purpose-built apartments | 3.1% | $1,550 | — |
| Condominium apartments | 1.3% | $2,305 | — |
Condominium apartments tend to have lower vacancy rates because individual owners are more flexible on rent — they are motivated to cover their mortgage payments and avoid vacancies. Purpose-built operators manage larger portfolios and can absorb some vacancy while maintaining pricing discipline.
Outlook for Canada’s rental market
CMHC expects vacancy rates to remain elevated heading into 2026. Strong rental completions will continue adding supply, while demand will be tempered by reduced immigration targets and economic uncertainty from trade tensions.
However, as incomes grow and vacancy rates stay elevated, rental affordability is expected to improve more broadly. The gap between turnover and non-turnover rents should shrink, and turnover-driven rent increases are likely to moderate.
For renters, 2025 marked the beginning of a meaningful shift from the extreme tightness of 2022–2023. More options, stabilizing rents, and landlord incentives are providing some relief — particularly in markets like Toronto and Vancouver where conditions had been most challenging.
Sources
- CMHC 2025 Rental Market Report
- CMHC Housing Market Information Portal
- CMHC Rental Market Survey Data Tables
Decision framework
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| Decision input | What to clarify first |
|---|---|
| Time horizon | Immediate action, this year, or long-term planning |
| Financial impact | High-stakes decision or low-stakes optimization |
| Complexity level | Simple setup, moderate comparison, or advanced strategy |
| Evidence needed | Rule-of-thumb decision or data-backed model |
When the decision has tax, legal, or debt implications, prioritize the framework articles first and then move into specific calculators and implementation guides.
Implementation checklist
Use this checklist to translate research into execution:
- Define the exact outcome you are trying to achieve.
- Collect baseline numbers before changing strategy.
- Compare at least two practical options using the same assumptions.
- Document your final decision and next review date.
- Revisit after any major income, family, rate, or policy change.
Most mistakes come from skipping the baseline and jumping directly to action. A documented process improves decision quality and reduces costly reversals.
Common mistakes and how to avoid them
| Common mistake | Better approach |
|---|---|
| Chasing one metric in isolation | Evaluate full cash-flow, tax, and risk impact |
| Using generic assumptions | Adapt inputs to your province, income, and timeline |
| Delaying implementation too long | Start with a conservative version and refine quarterly |
| Ignoring downside scenarios | Test best case, base case, and stress case |
A hub page should function like a control panel: clear sequencing, practical ranges, and explicit trade-offs for real-world decisions.
Tracking metrics that matter
Track a small set of indicators so you can adjust early:
- Net monthly cash-flow impact n- Effective tax rate or fee drag where relevant
- Debt and savings progress against target timeline
- Risk exposure (rate sensitivity, concentration, liquidity)
- Decision review cadence (monthly, quarterly, annually)
If the chosen strategy underperforms for two consecutive review periods, reassess assumptions before adding complexity.
Annual review cadence
A structured annual review keeps Canada Rental Market Data 2026 | Vacancy Rates & Average Rent current and actionable:
| Review window | Priority actions |
|---|---|
| Q1 | Update limits, rates, and policy changes |
| Q2 | Rebalance plans based on year-to-date progress |
| Q3 | Stress-test assumptions for next year |
| Q4 | Execute deadline-sensitive actions and optimize carry-forward items |
This cadence turns one-time reading into an operating system for better long-term outcomes.
Decision framework
A strong hub helps readers choose a path quickly instead of reading every article linearly. Start by mapping your situation, time horizon, and risk tolerance, then pick the relevant subtopic branch.
| Decision input | What to clarify first |
|---|---|
| Time horizon | Immediate action, this year, or long-term planning |
| Financial impact | High-stakes decision or low-stakes optimization |
| Complexity level | Simple setup, moderate comparison, or advanced strategy |
| Evidence needed | Rule-of-thumb decision or data-backed model |
When the decision has tax, legal, or debt implications, prioritize the framework articles first and then move into specific calculators and implementation guides.
Implementation checklist
Use this checklist to translate research into execution:
- Define the exact outcome you are trying to achieve.
- Collect baseline numbers before changing strategy.
- Compare at least two practical options using the same assumptions.
- Document your final decision and next review date.
- Revisit after any major income, family, rate, or policy change.
Most mistakes come from skipping the baseline and jumping directly to action. A documented process improves decision quality and reduces costly reversals.
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