Mark Carney leads Liberals to minority government in federal election
By Tony Irwin, Interim President, CFAA
Following a snap election call and a relatively short 37-day campaign, Mark Carney’s Liberal Party of Canada won a fourth consecutive term in offce. The Prime Minister has secured the ability to govern with a minority government. This minority government will need the support of at least one opposition party to pass legislation, which may complicate things at times, but housing should be a good place for collaboration. Beyond housing, the crucial CanadaU.S. relationship remains the primary issue that this government will have to deal with. CUSMA negotiations and tariffs will be the focus immediately, and CFAA is encouraged by positive early signals from President Trump regarding his relationship with Prime Minister Carney.
The Liberal Party’s campaign was buoyed by looming U.S. tariffs and President Trump’s intent on Canada becoming the “51st state.” Carney was able to overcome a signifcant polling defcit, which had the Liberal Party behind the Conservatives by more than 20 points as of December 2024.
The NDP lost offcial party status and Leader Jagmeet Singh, who lost his own seat, resigned as Party Leader. Conservative Leader Pierre Poilievre also lost his seat in Carleton, which he has represented since 2004. He has not issued an update on his role to date.
As of the date of this publication, the election results are as follows:
• Liberal Party: 168 seats, 43.7% of the popular vote
• Conservative Party: 144 seats, 41.3% of the popular vote
• Bloc Quebecois: 23 seats, 6.3% of the popular vote
• New Democratic Party: 7 seats, 6.3% of the popular vote
• Green Party of Canada: 1 seat, 1.2% of the popular vote
Liberal housing plan
During the runup to the election, Carney unveiled the Liberal Party’s housing strategy as part of its broader national platform. Build Canada Homes (BCH) forms the cornerstone of a $130 billion plan to address housing shortages, support infrastructure growth, and strengthen key areas like national security and healthcare. The full Liberal Party platform is available at https://liberal.ca/strong.
As per the website, through BCH, Canada will:
NATIONAL OUTLOOK
• Act as a developer to build affordable housing at scale, including on public lands. BCH will develop and manage projects and partner with builders for the construction phase of projects.
• Build faster, smarter, sustainable, more affordable homes by providing over $25 billion in fnancing to innovative prefabricated home builders in Canada, including those using Canadian technologies and resources like mass timber and softwood lumber. BCH will also issue bulk orders of units from manufacturers to create sustained demand. This will revitalize how we build homes in Canada, bringing forestry, innovation, engineering, manufacturing, and construction together.
• Support affordable homebuilders by injecting $10 billion in low-cost fnancing and capital for homes that support middle and low-income Canadians. This will include housing for students, seniors, veterans, people with disabilities, and Indigenous housing, shelters, and more.
• Prioritize sustainable building including sustainably sourced wood, recycled content, and lowemissions materials.
• Incentivize companies to hire apprentices and recent graduates by establishing new requirements on federal contribution agreements to major projects that commit industry partners to include signifcant opportunities for young Canadians.
To help create a better housing market, the federal government will:
• Cut municipal development charges in half for multi-unit residential housing for f ve years by working with provinces and territories to keep municipalities whole. These revenues will be offset by federal investment in housing infrastructure like water, power lines, and wastewater systems. Cutting development costs in half is expected to spur an estimated $8 billion of private investment, every year, toward building homes.
• Reintroduce a tax incentive for home builders known as the Multi-Unit Rental Building (MURB) which, in the 1970s, spurred tens of thousands of rental housing units across the country.
• Facilitate the conversion of existing structures into affordable housing units.
• Build on the success of the Housing Accelerator Fund, further reducing housing bureaucracy, zoning restrictions, and other red tape so that builders only need to navigate one housing market, instead of thirteen. And we will publicly report on municipalities’ progress to speed up permitting and approval timelines.
• Speed up approvals by reforming and simplifying national building codes; eliminating duplicative inspections and streamlining regulations for prefabricated and modular housing; leveraging preapproved, standardized housing designs across all public lands and encouraging the adoption of the designs as-of-right across the country; allowing builders and other orders of government to apply for multiple projects at once; and fast tracking builders who have a proven record with government.
• Build federal homes in ways that reduce the risk of costly damages. To protect homeowners and renters from costly food and wildfre risks, federally supported housing will not be built in areas that are at high risk for foods and wildfres. Housing will be built in safer locations, reducing homeowners’ exposure to costly risks and protecting their health and wellbeing.
• Stand up Canada’s high-risk food insurance program by April 2026 to support homeowners to reduce their exposure to future climate risk. We will expedite work with provinces, territories, and industry to fnalize this low-cost program.
Other measures include:
• Cutting income taxes for the middle class and saving dual-income families up to $825 a year. This includes reducing the marginal tax rate on the lowest tax bracket by 1 percentage point.
• Cutting the GST for frst-time homebuyers on homes up to $1 million. This will help homebuyers to save up to $50,000.
• Lowering the GST on homes between $1 million and $1.5 million for frst-time buyers.
• Reviewing Canada’s mortgage market to provide Canadians with more options while retaining stability in the market.
• Funding home retrofts and lowering utility bills while making it easier for low- and middle-income households, including renters, to adopt heat pumps and energy effciency upgrades. Eligible costs could include insulation upgrades, heat pump installation, and window replacements.
• Lowering household risks to foods, wildfres, and other extreme weather events. This will help with funding adaptation measures such as repairing or replacing your roof, installing a sump pump, or sealing cracks in your foundations.
The federal government must continue working closely with provinces and municipalities to reduce barriers to housing construction. Cancelling the capital gains tax increase as one of the frst actions of the Carney government was a welcome move. We believe that allowing rental housing providers to defer capital gains taxes if they reinvest in more rental housing will further stimulate construction and increase supply. A comprehensive review of CMHC programs is needed to ensure funding effectively supports the needs of rental housing providers and accelerates housing starts.
Canadian Multifamily Report Q1 2025: Spotlight on two-bedroom trends
By Peter Altobelli, VP and General Manager, Yardi Canada Ltd.
Canada's rental market continued its upward trend in Q4 2024, with the national average rent for a twobedroom apartment increasing by 6.7 per cent year-over-year. However, this rate of change is beginning to slow. This moderation is likely due to a combination of factors, including slower population growth and economic uncertainties related to global market conditions, both of which are impacting housing affordability. Drawing on Q4 2024 data from more than 5,500 properties (representing over 492,000 private rental units), this Q1 2025 Canadian Multifamily Report reveals that, while overall vacancy for twobedroom units now sits at 3.2 per cent, major Census Metropolitan Areas (CMAs) continue to see robust demand and elevated lease rates. The result is a market that, although still tight, is beginning to loosen, offering both challenges and opportunities for property owners, managers, and renters alike.
City highlights
Vancouver: pricey but steady
Vancouver remains Canada’s most expensive market for two-bedroom units, with in-place rents at $2,158—about 27.7 per cent above the national average. While new lease rents have increased by 6.6 per cent annually, renewed leases are seeing a lift of 3.3 per cent. Overall growth is still robust, but below peak rates. Vacancy sits at 2.4 per cent, refecting persistent demand in a city known for its housing constraints. Despite some easing, Vancouver’s two-bedroom market remains tight and highly competitive.
Calgary: rapid supply meets demand
Calgary’s two-bedroom rents stand at $1,733. Although this fgure represents the average rent, lease-overlease rent growth has increased by 6.1 per cent for new tenants and 7.8 per cent for renewals compared to last year. Vacancy, however, has risen to 6.8 per cent, notably higher than the national average. Calgary’s rental construction is more vibrant than many other CMAs, helping to address what was once a severe shortage. Still, strong in-migration from other provinces continues to support demand, striking a balance between rising vacancy and healthy changes in rent.
Toronto: strong growth, limited supply
Toronto's two-bedroom units average $1,838 in rent. New leases have seen a 7.7 per cent annual increase, while existing tenants' rents have risen by 2.7 per cent. The 2.7 per cent vacancy rate points to ongoing supply-demand imbalances, although new developments are gradually coming online. Toronto’s population growth is also beginning to moderate—both from policy changes affecting immigration and from some out-migration to smaller CMAs—yet newcomers and local households seeking more space keep up pressure on the market.
Halifax: outpacing the pack
Halifax has recorded the most substantial two-bedroom rent surge among CMAs, with annual leaseover-lease rent growth at 12.2 per cent for new leases and 5.7 per cent for renewals, reaching an average in-place rent of $1,573. Though the city’s overall rental market is smaller than Toronto’s or Vancouver’s, its
NATIONAL OUTLOOK
accelerated growth underscores that mid-sized CMAs continue to absorb demand spurred by migration and local economic expansion. With a 2.5 per cent vacancy rate, Halifax remains one of the country’s tighter markets.
Key economic and policy infuencers
1. Decelerating population growth: Canada’s immigration policy is shifting. Quotas are set to drop from 500,000 in 2024 to 390,000 in 2025, which could ease demand from new arrivals. Some CMAs, especially those dependent on inbound movers, may feel the impact, potentially slowing overall rent growth.
2. Interest rate and affordability outlook: With benchmark rates lowered to 3.25 per cent, Canadians may enjoy more disposable income as interest payments decline, sustaining rental demand, particularly in regions where homeownership remains out of reach.
3. Shifting political landscape: Political uncertainty—both domestically and abroad—can infuence housing policy, immigration levels, and even tariffs, all of which may ripple through the rental market. Combined with local development regulations, these factors will continue to shape supply conditions.
Why focus on two-bedroom units?
Two-bedroom rentals have broad appeal, serving small families, roommates, and remote workers needing offce space. As economic and demographic conditions evolve, these units often act as a trendsetter for the multifamily sector, capturing both affordability challenges and the desire for extra room. While the latest numbers suggest a sector stabilizing after years of turbulent growth, rent increases in high-demand areas remain elevated, even as vacancy rates begin to edge upward. Beyond two-bedroom units, the Yardi Canadian Multifamily Report dives into bachelor, one-bedroom, and three-bedroom segments, painting a comprehensive picture of national rental trends and opportunities. This gradual shift in fundamentals provides hope for both tenants and investors, pointing to a more balanced, sustainable future for Canada’s apartment market.
Trending cities and renter interest
Beyond these market-specifc trends, the second edition of RentCafe.com's report, "Canada's Trending Cities for Renters," provides a valuable overview of where renter interest is concentrated at the start of 2025. This report, which can be found within the Yardi Canadian Multifamily Report and online, analyzes millions of interactions on RentCafe.com, including apartment availability, listing views, favourited listings, and saved searches. This analysis reveals that Winnipeg remains the top choice for apartment hunters, followed by Edmonton and Victoria. The report also highlights a trend of renters gravitating toward mid-sized cities, potentially driven by affordability challenges in larger markets. For example, while Toronto remains a popular option, its growth in renter interest is less pronounced compared to these trending cities.
Plan ahead for 2025
For property managers and owners, understanding regional nuances in the two-bedroom market is crucial for effective portfolio and pricing strategies. This Q1 2025 Canadian Multifamily Report provides datadriven insights to help you navigate rental demand, pricing trends, and new supply. With the economy in fux, proactive planning will be key to addressing shifting renter preferences and maintaining occupancy levels.
Download the full report for a deeper dive into multifamily performance, including additional insights on in-place versus new lease rent growth, vacancy and turnover trends across all unit types, and a closer look at which CMAs are attracting the most renter interest. Visit www.yardi.com/cndmultifamilyreport to learn more.
CFAA announces new Board of Directors
CFAA is thrilled to announce the election of its Board of Directors. We are fortunate to have a group of dedicated, passionate industry leaders to support CFAA's mission as the leading advocate for Canada’s rental housing industry.
The new CFAA Board of Directors includes:
• Krish Vadicale, Executive Vice President, Skyline Group of Companies
• Dean Holmes, Executive Vice President, QuadReal Property Group
• Michael Tsourounis, Managing Partner and CoHead Real Estate, Hazelview Investments
• Max Graham, Chief Operating Offcer, Avenue Living
• Ruth Buckle, Senior Vice President, Property Management, Killam Apartment REIT
• Kellie Speakman, Vice President, Multi-Family, JLL Canada
• Larry Greer, Senior Vice President, Corporate
CFAA Rental Housing Conference
Affairs, CAPREIT
• David Trousdale, Executive Vice President, Homestead Land Holdings Ltd.
• Andrew Joyner, Managing Director and Head of Multi-Family, Tricon Residential
• Jerry Drennan, Chief Operating Offcer, Drewlo Holdings
• Glen Hirsh, Chief Operating Offcer, Starlight Investments
• Christian Szpilfogel, Chief Investment Offcer and Co-Founder, Aliferous Group
• Cameron Choquette, Owner, Small Rental Housing Provider
The 2025 CFAA Rental Housing Conference is taking place in Vancouver, BC from May 13 to May 15 at the Sheraton Vancouver Wall Centre. This year’s theme is “Partnering for Progress.” Join senior leaders and decision-makers from across Canada at the country’s premier rental housing event. This year, the CFAA RHC is focusing on innovation, collaboration, and shaping the future of the rental housing industry. Be part of bold discussions, gain valuable insights, and connect with key players driving Canada’s rental housing forward.
Sam Kolias, Chairman and CEO of Boardwalk, will be receiving the 2025 CFAA Lifetime Achievement Award for his visionary leadership and lasting impact on Canada’s rental housing industry. We will be celebrating his achievements at the CFAA RHC celebration dinner on Wednesday evening.
Here's a summary of the schedule for the RHC:
Tuesday, May 13
12:00 PM The Home Depot Building Innovation Tour
5:30 PM West Coast Welcome Reception sponsored by Westland Express
7:00 PM After-party hosted by Wyse Meter Solutions, The Home Depot, and Apollo Insurance
Wednesday, May 14 7:00 AM Breakfast sponsored by LandlordBC
8:00 AM Opening remarks
8:30 AM Executive discussion – Future-Proofing Rental Housing: Technology and Innovation presented by Yardi
9:30 AM Unpacking Housing Policy: From BC to Parliament Hill
10:15 AM Networking break and Supplier Showcase
10:45 AM The Great Canadian Apartment Superstars: 60 Ideas in 60 Minutes
10:45 AM Crisis Response in Property Management: Floods, Fires and Emergencies presented by Westland Express
11:45 AM Networking break and Supplier Showcase
12:00 PM Lunch sponsored by Egis
1:00 PM Keynote: Greg Lyle, Innovative Research Group
1:30 PM
2:15 PM
Keynote: Ryan Berlin, rennie
Shifting the Story: Addressing Rising Rents and Rede fning the Industry’s Role in Canada
2:15 PM AI Path to Operational Excellence: Optimizing Residential Properties for the Future presented by Yardi
Wednesday, May 14 3:15 PM
3:30 PM
4:15 PM
6:00 PM
8:00 PM
Thursday, May 15 8:00 AM
8:30 AM
9:00 AM
NATIONAL OUTLOOK
Networking break and Supplier Showcase
Waste Not, Optimize More: Smart and Sustainable Waste Solutions for Rental Housing presented by Metro Compactor Service
Supplier Showcase and Kijiji cocktail reception
Home Depot celebration dinner
After-party hosted by Rentals.ca
Breakfast sponsored by Eagle Restoration
Yardi Tech Talk: Find Out How AI and ChatGPT Are Transforming Marketing
Bridging the Gap: How Public, Private and Non-Prof ts Can Address Housing Inequities
10:00 AM ESG in 2025: Strategies for Success in the Apartment Sector presented by Wyse Meter Solutions
11:00 AM Networking break
11:15 AM Mitigating Risks During Challenging and Uncertain Times: Financial Strategies and Tools presented by First National
11:15 AM
Renters’ Habits and Preferences: What Renters Want presented by Rentals.ca and Rentsync
12:15 PM Lunch sponsored by Apartments.com
1:00 PM
2:00 PM
Winning the Talent Challenge: Recrutment, Retention and Workplace Culture
Closing remarks and conference conclusion
For more information on the CFAA RHC, please visit www.cfaa-fcapi.org. We hope to see you at the show.
