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Elevated Supply Reducing Advertised MF Rents in Major Markets
Elevated supply continues to reduce advertised multi-family rental rates in major markets, says a new Canada Mortgage and Housing Corporation.
But rents continue to rise and CMHC expects vacancy rates to climb in most markets through the rest of 2025.
Since October 2024, asking rents have declined due to the increased supply, albeit at a lower rate than a year ago.
“Sluggish job markets and decelerating migration are creating challenging environments for landlords and property managers,” said CMHC.
In the first quarter of 2025, advertised rents in the Calgary, Toronto, Vancouver and Halifax regions fell between 2% and 8% year-over-year. But Edmonton, Ottawa and Montreal continued to see rents increase on an annual basis, also at a slower pace.
As purpose-built rental supply grows, CMHC construction-financing and products are playing a large role. In 2024, they supported 88% of Canada’s new purpose-built apartment starts, said CMHC.
