A new report shows signs of change in the nation's apartment market
Canada’s rental housing market is facing a pivotal shift as vacancy rates reach a five-year high, according to the latest Canadian National Multifamily Report released by Yardi® Canada.
Drawing on data from more than 511,000 units across 5,800 properties, the Q3 2025 report – which analyzed conditions during the second quarter – found the national vacancy rate climbed to 4.1%, marking its highest level since 2020.
Major urban centres such as Calgary (7.4%), Edmonton (4.6%), and Toronto (4.2%) saw the most significant increases in available units. According to the report, slower immigration levels, weaker population growth and a rise in housing supply contributed to the softening demand.
Although leasing activity has cooled, national in-place rents – which account for all current leases, including renewals – continued to edge upward, rising by $14 to reach $1,720 in Q2 2025. However, year-over-year rent growth decelerated to 4.8%, down from 6.3% in the previous quarter.
The report also introduced a new indicator: Average Resident Length of Stay, a measure of tenant stability. In supply-constrained markets like Toronto and Hamilton, renters are staying longer, with average tenancies of 47 and 45 months respectively.
Meanwhile, lease-over-lease rent growth – a metric tracking rent changes for newly signed leases – declined to 2.8%, its lowest level since the company began monitoring the figure in 2020.
“Vacancy is rising, and the market is entering a new chapter,” said Peter Altobelli, vice president and general manager of Yardi Canada. “With shifting demographics, economic uncertainty and growing supply, housing providers must rethink how they forecast, invest, and operate. The path forward demands sharper insight, faster adaptation and a renewed focus on long-term resilience.”
Despite the shifting market, the national turnover rate remained low at 23.4%. However, some landlords are responding to increased competition by offering rent concessions, including free rent periods and move-in incentives.
The report’s findings suggest that while Canada’s multifamily rental market remains active, both housing providers and renters are recalibrating in light of emerging economic and demographic trends.
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