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Canada’s rental market: Slowing growth, shifting opportunities
By Peter Altobelli, Vice President and General Manager, Yardi Canada Ltd.
Canada’s multifamily housing market remains stable in 2025, but signs of cooling momentum are becoming more visible. National rent growth has slowed, turnover rates are edging higher and several major cities are seeing softer leasing activity. These changes point to a market that is still healthy, yet more competitive for housing providers.
Drawing on insights from the Q3 2025 Yardi Canadian National Multifamily Report, here’s a look at the national picture, regional standouts and what these shifts mean for property managers.
National overview: Stability with signs of moderation
In Q2 2025, the average in-place rent across Canada rose to $1,720, up $79 year-over-year, representing 4.8% annual growth . While still positive, this is a slower pace than earlier in the year. Lease-over-lease rent growth, often used as a real-time measure of momentum, fell to 2.8%, the lowest since tracking began in 2020.
The national vacancy rate inched up to 4.1%, 110 basis points higher than last year. Many CMAs posted year-over-year vacancy increases, with Calgary, Halifax and Edmonton seeing the largest jumps.
Several factors are influencing this moderation. The federal government’s cap on non-permanent residents is reducing population growth, with Q1 2025 marking Canada’s smallest quarterly increase since early 2020. Economic uncertainty, driven partly by U.S. tariff negotiations, is also affecting confidence. The Bank of Canada lowered its policy rate again to 2.25%, further balancing inflation risks with slower growth.
Key data highlights
Some cities are outperforming the national average for in-place rent growth. Edmonton led with a 6.6% increase, followed by Halifax (6.2%) and Saskatoon (6.1%). These markets are benefiting from affordability and strong inmigration.
Turnover is highest in Calgary (42.1%), followed by Saskatoon (39.8%) and Edmonton (36.7%). These elevated rates indicate more renter mobility and frequent unit turnover.
A new metric in the report, average length of stay, further illustrates this trend toward shorter tenancies, adding to operational pressures.
Regional spotlight: Where growth stands out Several cities are defying the national slowdown. In Ottawa, in-place rent climbed to $1,313, supported by new lease-over-lease growth at 5.7%. Montreal also posted strong annual rent gains alongside elevated turnover.
Alberta remains a demographic outlier. While Ontario, British Columbia and Quebec saw population declines in early 2025, Alberta added 20,500 residents, driven by interprovincial migration. This influx creates opportunities for housing providers to target movers from highercost provinces seeking more affordable rental options.
What this means for housing providers
The market remains sound, but leasing environments in many cities are becoming more competitive. Slowing lease-over-lease growth suggests renters have more choice and are taking longer to commit.
1. Prioritize tenant retention: Higher turnover raises costs, from marketing to maintenance. Proactive renewals, flexible lease terms and loyalty perks can help. Mobile-friendly communication also improves the resident experience.
2. Operate efficiently: With vacancy edging higher in some markets, efficiency is critical. Centralized communication, digital leasing and streamlined workflows help teams respond faster to leads and service requests.
3. Leverage market positioning: CMAs like Calgary, Saskatoon and Halifax can market affordability to prospects from higher-cost regions. Messaging that combines lifestyle benefits with cost savings can help convert interest into leases.
The road ahead
Canada’s multifamily housing market is entering a more balanced phase. Rent growth remains positive, but rising vacancy rates and shorter stays mean housing providers will need to focus on both attracting and retaining residents. By keeping a close eye on market data, adapting leasing strategies and delivering a strong resident experience, housing providers can turn today’s challenges into opportunities for long-term success.
To explore the full set of findings from the Q3 2025 report, visit: yardi.com/cndmultifamilyreport