Canadian Apartment Industry Report Canadian Multifamily Market: Momentum Slows, Uncertainty Builds Which direction will the apartment market go following its years of exceptional growth? Canada’s multifamily sector is showing early signs of stabilization as vacancy rises and rent growth moderates. Supply continues to expand, but economic forces — from inflation to reduced immigration — may challenge the market’s resilience in 2025. According to the Yardi® Canadian multifamily report, the sector remains fundamentally strong but is adjusting to a new phase, highlighted by the following national averages: •
A 5.3% year-over-year increase in in-place rents, bringing the national average to $1,582.
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A 4.0% rise in new lease-over-lease rents in Q1 2025, down 240 basis points from Q4 2024.
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A national average vacancy rate of 4.0%, the highest level since 2020.
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Bachelor unit vacancy reaching a 5.8% average, with Toronto (7.7%) and Calgary (7.1%) leading all Census Metropolitan Area (CMAs).
While demand for rentals remains healthy, affordability challenges and shifting demographics are creating new uncertainties. Slower population growth, elevated development costs and global economic pressures are setting the stage for a more measured pace of growth across the country.
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