DiscoverThe Canadian Real Estate InvestorThe Bull Vs. Bear Case for Canada’s Rental Market
The Bull Vs. Bear Case for Canada’s Rental Market

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

Update: 2025-12-30
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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.

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

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

Daniel Foch & Nick Hill