The Bull Vs. Bear Case for Canada’s Rental Market

Canada's rental market experienced a dramatic shift in 2025, with vacancy rates rising to 3.1% nationally (the highest in a decade) due to record-high rental construction meeting slower population growth and reduced immigration. This has flipped the market from landlord-favored to renter-favored, with landlords now offering incentives like free months of rent to fill units. Vacancy hit 3.7% (highest since 1988), with landlords competing for tenants for the first time in a generation and offering significant incentives. Calgary maintained a balanced 5% vacancy despite adding 11% to its rental stock, thanks to strong interprovincial migration and employment. Despite rising vacancies, national rents increased ~5%, with landlords raising rates on existing tenants, and affordable units remain scarce. Exchange-Traded Funds (ETFs) | BMO Global Asset Management MULTIPLEX MASTERCLASS LISTEN AD FREE free 1 week trial for Realist Premium Deal AnalyzerSee omnystudio.com/listener for privacy information.