Investor appetite for Canadian multi-family rental assets exceeded core-quality availabilities in the first quarter, says a new report from Morguard.

Multi-family assets were expected to generate strong yields but supply was limited, according to Morguard’s 2025 Economic Outlook and Fundamentals report.

“The multi-suite residential rental sector’s continued resilience was observed in the first quarter, amid global trade tensions,” said Angela Sahi, president and chief operating officer of Morguard. “Although the shifting global economic and financial landscape may further reshape the market, Canada’s real estate sector is underpinned by solid fundamentals that should support it through periods of uncertainty.”

Asking-rent growth was the strongest in the first quarter due to a combination of factors, including: High ownership costs, persistent inflation, and economic volatility that supported demand.

The market dynamics contributed to above-average ask-rent growth for three-bedroom units during the past year. Larger-unit demand and rent growth are expected to remain elevated amid intensifying economic uncertainty.

Pictured: Apartment building currently under construction in Vancouver.

Photo: Karamysh/Shutterstock