Canada’s national apartment vacancy rate rose to 5.1% during the first quarter, up 110 basis points year-over-year and the ninth consecutive quarterly increase.
According to new data from Yardi, in-place rent growth slowed to an average of 2.7% annually – the lowest rate in four years – with average in-place rents reaching $1,761. New lease rates fell to an average of -1.0% nationally, with eight of the top 12 major metro areas recording negative growth.
Operating costs also varied by province. Annual expenses averaged $8,053 per unit nationally in the year ending in the first quarter, with the highest averages in Ontario ($8,858) and the lowest in Saskatchewan ($6,733).
“Vacancy is rising, new lease rates are negative in most markets and the renter population is shrinking,” said Peter Altobelli, vice president and general manager, Yardi Canada Ltd. “These are real signals that the market is shifting quickly, and the window for the industry to adapt is now. Those who lean into data, technology and AI will be best positioned to make smarter decisions on tenant retention and investment opportunities.”
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