Canada’s multi-family rental-housing market is experiencing a slowdown in rent growth, but vacancy rates remain persistently low due to continued high demand, says a new Yardi report.

The quarterly report is based on data from 476,000 rental units across 5,400 properties. Yardi points to limited supply and high demand as primary drivers in keeping vacancy tight and affordability challenging.

Despite a slight economic recovery and easing inflation, Canadian renters are feeling the strain. National vacancy rates have risen slightly to 3.2% on average—the highest level since 2022—but turnover remains minimal, indicating strong demand in urban markets.

The report identifies Winnipeg, Saskatoon, and Edmonton as trending rental markets, with many renters increasingly looking to these cities for affordable housing options.

The report notes that national rental rates grew by 6.2% year-over-year, bringing average monthly in-place rents to $1,547.

“The Canadian apartment market remains resilient,” said Peter Altobelli, vice-president and general manager of Yardi Canada. “But the growing gap between housing demand and supply is shaping rental conditions. Although rent growth has cooled slightly, affordability remains a major issue for renters across the country.”

With continued pressures from high demand, policymakers are struggling to address the housing shortage. New supply has been slow to match the growing need for rental units, and Yard expects this to persist.

Photo: Yardi