Canada Multifamily National Report

Demand forces remain in driver’s seat. While Canada saw a record number of new apartments added to the rental market in 2022, the sector’s vacancy rate tightened to the lowest level since 2001. This indicates that rental demand significantly outgrew supply as the nation’s economy continued its recovery from the global health crisis. With an increasing number of new residents and rapidly rising interest rates, population growth and deteriorating affordability in the homeownership market were the main drivers for this ballooning rental demand. Although a further increase in completions is expected this year, these demand tailwinds will still dominate the market. The national average vacancy rate, as a result, will likely continue to trend down, sending rents to a post-pandemic high.