Rental housing vacancy rates across major Canadian cities increased during 2025 to 3.1%, up from 2.2% in 2024 and above the national 10-year average.
According to data from the Canada Mortgage and Housing Corporation’s (CMHC) 2025 Rental Market Report, the rise in vacancy was not met by improved affordability. The average rent paid by all tenants for two-bedroom units rose 5.1%, which was primarily attributed to units being repriced at a higher rent following tenant turnover.
Among the major Canadian cities, Toronto’s purpose-built apartment vacancy rate hit 3% for the first time since the pandemic due to declining immigration, less demand from international students, and economic uncertainty. Vacancy rates in Vancouver reached 3.7%, the highest level since 1988, while rent growth is at a two-decade low. And Calgary’s vacancy rate remained stable at 5% as demand kept pace with a significantly higher rental supply, which in 2025 grew at the fastest pace in decades.
“The tight conditions that defined rental markets in the past few years in Canada’s largest cities loosened in 2025. Historically high rental supply completions combined with weaker demand caused by slower population and economic growth led to a rise in vacancy rates in many large cities,” said Tania Bourassa-Ochoa, CMHC’s deputy chief economist. “Purpose-built rental operators responded to these market conditions by offering incentives to new tenants, such as a month of free rent, moving allowances and signing bonuses. However, affordability is still a challenge in most markets, as the supply of units affordable to lower income households remains low.”
