Vacancy reaches five-year high in Canada's rental market

Slower immigration and economic uncertainty weigh on demand as rent growth moderates

TORONTO, July 23, 2025 /PRNewswire/ -- Yardi® Canada has released its latest Canadian National Multifamily Report for Q3 2025, analyzing market activity during Q2 2025. Drawing on anonymized data from over 511,000 units across 5,800 properties, the report highlights a key shift in the market: rising vacancy rates and slowing rent growth.

The national vacancy rate climbed to 4.1%, the highest level recorded since 2020. Major Census Metropolitan Areas (CMAs) including Calgary (7.4%), Toronto (4.2%) and Edmonton (4.6%) saw the steepest increases. Slower population growth, a pullback in immigration and rising supply are all contributing factors.

Although rental demand has weakened, in-place rents — which reflect all current leases including renewals — continued to rise modestly, increasing by just $14 nationally to $1,720 in Q2 2025. Year-over-year rent growth slowed to 4.8%, down from 6.3% the previous quarter.

New this quarter Yardi has introduced a new metric — Average Resident Length of Stay — which measures the average number of months tenants remain in a unit before vacating. Tenants stay longest in supply-constrained CMAs such as Toronto (47 months) and Hamilton (45 months).

Lease-over-lease rent growth, which measures rent changes for newly signed leases, declined to 2.8%, its lowest point since Yardi began tracking the metric 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."

The national turnover rate remained low at 23.4%, despite modest increases in some regions. In response to rising vacancy, some landlords are offering rent concessions such as free rent periods and move-in incentives.

To view the full Q3 2025 report and explore regional insights, visit: https://www.yardi.com/cndmultifamilyreport

About Yardi
Yardi® develops industry-leading software for all types and sizes of real estate companies around the world. With more than 10,000 employees, Yardi is working with our clients to drive significant innovation in the real estate industry. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.

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SOURCE Yardi