2025 Mid-Year Rental Market Update

Canada’s rental market is entering a period of adjustment in 2025, with increased supply leading to declining advertised rents in major cities like Toronto and Vancouver. However, affordability continues to worsen as turnover rents drive higher overall costs for tenants. Slower migration and weaker job markets are softening demand, while vacancy rates are expected to rise. Despite short-term relief from new supply, sustained rental development remains essential to meet long-term population growth and housing needs.