National vacancy rates reached highest level since 2020

Canada's rental market is showing signs of change as rising vacancy rates and slowing rent growth signal a shift in demand and competition, according to Yardi Canada’s latest multifamily report for Q1 2025.
The report, which draws on anonymized data from more than 492,000 units across 5,500 properties, sheds light on the market’s performance during Q4 2024 and highlights ongoing challenges such as affordability and supply constraints.
It reveals that national vacancy rates reached 3.6% in Q4 2024, the highest level seen since 2020. Bachelor units were particularly impacted by the increase, seeing the largest rises in availability.
Despite the shift in market dynamics, the demand for rental units remains steady, with turnover edging up to 23.1%, a slight increase but still historically low.
Yardi Canada also points to positive growth in construction activity, with national apartment completions rising by 28.2% year over year to 63,000 units through the first three quarters of 2024.
New construction starts also climbed by 20.3%, totaling 68,000 units. This increase in supply may help alleviate some of the pressure on renters, though affordability continues to be a central issue for many.
Yardi Canada vice president and general manager Peter Altobelli observed that the increase in vacancy rates and the slowing rent growth represent a significant shift in Canada's rental market dynamics.
"These trends suggest some easing of the intense competition we've seen in recent years, but affordability challenges remain at the forefront. Collaborative efforts between developers and policymakers will be critical in addressing the evolving needs of renters across the country," said Altobelli.
Looking ahead to 2025, Yardi Canada noted that while lower interest rates and easing inflation provide some relief, high development costs and slower immigration growth still present obstacles. As developers and policymakers work together to address these ongoing challenges, the market is expected to face a delicate balance between meeting demand and improving affordability.
What do you believe is the best course of action to ease affordability pressures? Share your thoughts in the comments.