Canada’s multi-family real estate market is in a slow transition, says a new Yardi report.

According to the Toronto-based real estate data analytics firm, the apartment market experienced a slight cooling despite strong demand during the second quarter.

“Fundamental metrics such as rent growth and vacancy have moderated from peak levels but remain robust by long-term standards,:” says Yardi in the report. “Rent growth is likely to continue decelerating, but slowly as demand is heightened by ongoing population growth while delivery levels are stagnating.”

The average national in-place rent increased 6.3% year-over-year to a record-high $1,521. But the annual growth rate declined from 6.5% over the previous two quarters but remains well above long-term levels. (In-place rents comprise an aggregation of all rents in a given Census Metropolitan Area (CMA), including those for new leases, renewals and existing leases.)

Calgary’s posted the highest year-over-year in-place rent increase, 12.9%, followed by Saskatoon (9%) and Edmonton (8.5%.) Only two markets, Vancouver (4.9%) and Winnipeg (4.3%) saw increases of less than 5%.

The national apartment vacancy rate rose just 30 basis points year-over-year to 3%.

Apartment-construction starts remain stagnant, says Yardi.

Photo: Yardi