What is the vacancy rate in Canada?

The national vacancy rate for purpose-built rental apartments rose to 3.1% in October 2025, up from 2.2% in October 2024. This is now above the 10-year average and the highest level since the early pandemic period. Vacancy rates increased across all major cities, driven by weaker demand from reduced immigration and increased rental supply from new completions and condominium apartments entering the market.

What is the average rent in Canada?

The national average rent for a two-bedroom purpose-built rental apartment was $1,550 in October 2025, up 5.1% year-over-year. However, this figure varies dramatically by city — from under $1,000 in smaller markets to over $2,000 in Toronto and Vancouver. Average rent reflects both sitting tenants (often paying below-market rents) and new tenants (paying closer to market rates).

What is the CMHC Rental Market Survey?

The CMHC Rental Market Survey is an annual survey conducted every October by Canada Mortgage and Housing Corporation. It collects data on vacancy rates, average rents, and rental universe counts for purpose-built rental housing across Canada. Results are published each December and cover all urban centres with populations of 10,000 or more.

Why are rental vacancy rates rising in Canada?

Rental vacancy rates are rising due to a combination of weaker demand and increased supply. On the demand side, lower immigration from policy changes and a weaker labour market have reduced new household formation. On the supply side, strong rental construction completions and more condominium apartments entering the rental market have added units. This shift has given renters more options and eased the tight conditions of 2022–2023.

What is the difference between purpose-built rental and condominium rental?

Purpose-built rentals are apartments specifically constructed and operated as rental housing — they are always available for rent. Condominium rentals are individually owned condo units that the owner chooses to lease rather than live in. Condo rents tend to be higher (national 2BR average: $2,305 vs $1,550 for purpose-built) because they are typically newer and have more amenities.

Canada Rental Market Data 2025–2026 | Vacancy Rates & Average Rent

Canada rental market data

Canada’s rental market shifted meaningfully in 2025. After years of historically tight conditions, vacancy rates rose across every major metropolitan area as weaker demand from reduced immigration and a softer labour market coincided with increased rental supply from both new purpose-built completions and condominium apartments.

Data source: CMHC Rental Market Survey (October 2025), published December 2025. This is the most recent national rental data available — CMHC surveys the market once per year every October. Next update expected December 2026.

Metric	October 2025	Change
Vacancy rate (purpose-built apartments)	3.1%	Up from 2.2% in Oct 2024
Average 2-bedroom rent	$1,550	+5.1% year-over-year
Condo apartment vacancy rate	1.3%	Up from 1.0% in Oct 2024
Average 2-bedroom condo rent	$2,305	—

“Softened market conditions eased rent pressures,” noted CMHC in their 2025 Rental Market Report. “Weak renter household formation and increased rental supply contributed to softened rental market conditions.”

For detailed city-level rental data, see our Toronto rental market analysis.

Vacancy rates by major city

Vacancy rates rose across all major Canadian census metropolitan areas in October 2025:

City	Oct 2024	Oct 2025	Change	Avg 2BR Rent
Vancouver	1.7%	3.7%	↑ 2.0 pp	—
Calgary	3.3%	3.3%	—	—
Edmonton	3.4%	3.4%	—	—
Toronto	2.5%	3.0%	↑ 0.5 pp	$2,046
Ottawa	2.0%	2.7%	↑ 0.7 pp	—
Montréal	1.8%	2.9%	↑ 1.1 pp	—
Halifax	2.1%	2.7%	↑ 0.6 pp	$1,826

Purpose-Built Apartment Vacancy Rates — Major CMAs (October 2025)

Vancouver experienced the largest vacancy rate increase, rising to 3.7% — its highest level since 1988. Toronto hit 3.0% for the first time since the pandemic. Meanwhile, Calgary’s rate was unchanged despite substantial new rental supply, reflecting strong population-driven demand.

Key themes in Canada’s 2025 rental market

Rents for new tenants fell

After two years of strong increases, the average rent paid by new tenants (turnover rent) for two-bedroom units fell in most major centres. Exceptions included slight growth in Edmonton and Ottawa and ongoing increases in Montréal. Purpose-built landlords responded by offering incentives such as one month of free rent, moving allowances, and signing bonuses.

Rent growth persisted for sitting tenants

Despite softening, the average rent paid by all tenants for two-bedroom units still rose 5.1% nationally. About 40% of this increase came from tenant turnover — when units are re-priced at higher levels between tenancies. In Toronto and Vancouver, stricter rent guidelines limited increases for sitting tenants, making turnover a larger driver of rent growth.

Condominium apartments added competition

In Toronto and Vancouver, more condominium apartment owners moved units into the rental market. Weak housing ownership markets kept condo investors renting rather than selling. This added competitive pressure to the purpose-built rental segment, with landlords identifying condo rentals as a major obstacle to leasing new projects.

Lower immigration slowed demand

Population growth — a key driver of housing demand — slowed sharply as immigration policy changes reduced new arrivals. Ontario and British Columbia, popular destinations for international students, were hardest hit. The young adult population (15–34), the primary driver of rental household formation, declined in these provinces.

Purpose-built vs condominium rental market

Canada’s rental market is split between two segments: purpose-built rental apartments and rented condominium apartments.

Segment	Vacancy Rate	Avg 2BR Rent	Universe
Purpose-built apartments	3.1%	$1,550	—
Condominium apartments	1.3%	$2,305	—

Condominium apartments tend to have lower vacancy rates because individual owners are more flexible on rent — they are motivated to cover their mortgage payments and avoid vacancies. Purpose-built operators manage larger portfolios and can absorb some vacancy while maintaining pricing discipline.

Outlook for Canada’s rental market

CMHC expects vacancy rates to remain elevated heading into 2026. Strong rental completions will continue adding supply, while demand will be tempered by reduced immigration targets and economic uncertainty from trade tensions.

However, as incomes grow and vacancy rates stay elevated, rental affordability is expected to improve more broadly. The gap between turnover and non-turnover rents should shrink, and turnover-driven rent increases are likely to moderate.

For renters, 2025 marked the beginning of a meaningful shift from the extreme tightness of 2022–2023. More options, stabilizing rents, and landlord incentives are providing some relief — particularly in markets like Toronto and Vancouver where conditions had been most challenging.