Vacancy climbs as Canada's rent momentum cools in Q4 2025

New lease rent growth fades as supply edges higher

TORONTO, Jan. 22, 2026 /PRNewswire/ -- Yardi® has released the Canadian National Multifamily Report, recapping Q4 2025 and highlighting a market that remains resilient overall, but is becoming more balanced as vacancy rises and rent growth moderates across major metros.

A key driver of this shift is new supply. Canada's six largest CMAs delivered 94,611 units in 2025 through November, up 1.9% from 92,830 in the same period in 2024, according to the Canada Mortgage and Housing Corporation (CMHC) and Common Sense Economics. As more inventory comes online, market conditions are beginning to normalize across several major markets.

Pricing and availability trends reflected that change. New lease rent growth slowed to 0.7% across Canada in Q4 2025, and several large Ontario markets moved into negative territory, including Kitchener–Cambridge–Waterloo (-2.7%), Toronto (-1.0%) and Hamilton (-0.2%). The vacancy rate across Canada rose to 4.5%, the highest level since Yardi began tracking in 2020.

Operating costs also varied significantly by province. Annual expenses averaged $8,004 per unit across Canada in 2025 (January through December), with the highest totals in Ontario ($8,822 per unit) and Alberta ($8,044) and the lowest in Nova Scotia ($6,616) and Saskatchewan ($6,727). 

"Canada's rental market is entering a new chapter," said Peter Altobelli, vice president and general manager, Yardi Canada Ltd. "We haven't seen this level of new purpose-built rental supply in a long time, and it's already shifting market conditions. Reliable, timely data will be essential for housing providers making decisions on pricing, operations and investment."

The Canadian National Multifamily Report is based on data from 5,900 properties representing more than 517,000 private rental units across Canada, offering insights into rents, vacancy, supply trends, turnover and resident retention.

To download the full report, visit: yardi.com/cndmultifamilyreport 

About Yardi
Yardi® develops industry-leading software for all types and sizes of real estate companies around the world. With more than 10,000 employees, Yardi is working with our clients to drive significant innovation in the real estate industry. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.

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