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Business Environment Profiles - Canada

Rental vacancy rate

Published: 15 May 2025

Key Metrics

Rental vacancy rate

Total (2025)

3 %

Annualized Growth 2020-25

-2.0 %

Definition of Rental vacancy rate

The rental vacancy rate represents the average number of residential rental units available per multifamily complex. The rate is positively correlated with homeownership rates and a high vacancy rate is indicative of low demand for renting. Data is sourced from the Canada Mortgage and Housing Corporation's Rental Market Survey.

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Recent Trends – Rental vacancy rate

Over the past five years, Canada's rental vacancy rates have experienced notable fluctuations, reflecting the shifting dynamics of the housing market and broader economic conditions. The period began with relatively tight rental markets in many cities, as strong population growth and high demand for rental housing kept vacancy rates low. This environment was further intensified by affordability challenges in the ownership market, prompting more Canadians to seek rental options, especially in urban centers where supply struggled to keep pace with demand.

As the years progressed, the rental market began to show signs of change. Economic uncertainties, varying migration patterns, and adjustments in housing supply contributed to a gradual easing of rental market pressures. Developers responded to earlier shortages by bringing new rental units to market, while some regions experienced shifts in demand due to changing employment opportunities and evolving lifestyle preferences. These factors collectively led to a more balanced market, with vacancy rates beginning to rise from their previous lows, signaling improved options for renters.

By 2025, the rental landscape had transitioned to a more stabilized state. The earlier period of exceptionally tight markets gave way to conditions where renters had greater choice and landlords faced increased competition. This shift was largely driven by a combination of new rental supply, moderated demand, and broader economic adjustments. The overall trend points to a market that has moved from scarcity toward balance, providing a healthier environment for both tenants and property owners as the country adapts to ongoing demographic and economic changes.

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5-Year Outlook – Rental vacancy rate

Over the next five years, Canada's rental vacancy rates are expected to gradually rise from recen...

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