Increased rental supply and slower demand growth are easing conditions in Canada’s largest rental markets. However, this shift is being driven largely by an increase in higher-priced rental units, which are taking longer to lease, signaling some easing at the upper end of the market while affordability challenges persist for lower-priced rentals, according to a new report Canada Mortgage and Housing Corporation (CMHC).
The report provides an update on rental market conditions in the Vancouver, Edmonton, Calgary, Toronto, Ottawa, Montréal, and Halifax Census Metropolitan Areas (CMAs).
Asking rents declined in Toronto, Vancouver, Calgary and Ottawa, while remaining relatively stable in Montréal, Edmonton and Halifax. While renters seeking new leases have gained more choice in some markets, affordability and tenant mobility are not improving equally across all rent levels. Vacancy increases are concentrated in newer, higher-priced units, while lower-rent segments continue to experience persistently low vacancy rates and limited mobility, said the CMHC.
Tania Bourassa-Ochoa
Despite slower population growth, rental demand is expected to remain high through continued household formation, particularly among younger adults who are more likely to rent, it added.
“Recent supply growth is improving choice for renters in some segments of the rental market, particularly among newer, more expensive units,” said Tania Bourassa-Ochoa, Deputy Chief Economist, CMHC. “However, persistently tight conditions in lower segments of the market highlight that affordability challenges remain and will take time to address.”
Read the full report on the CMHC website.
Watch CMHC’s podcast discussing the update.
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024, 2025 and 2026.
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