There’s plenty of supply for Canadian renters—if they can actually afford it. The CMHC’s 2025 Rental Report shows vacancy rates have more than doubled record lows. They note the increase helped slow price growth in purpose-built rentals (PBRs). Unfortunately, slow isn’t low—and far from a contraction. Rental prices continue to grow much faster than income.
Canadian Rental Vacancy Rate Hits A 4-Year High
Canadian rental vacancies have been climbing aggressively over the past few years. The national vacancy rate surged to 3.1% in October 2025, up from 2.2% a year prior. It may seem like a small number, but this means vacant rentals climbed 40% faster than demand. The rate is now at a 4-year high, matching the 2021 pandemic spike and similar to 2017.
Canada’s international student cap is helping, but it wasn’t the only reason. The vacancy rate plunged in 2022 after an immigration shock, hitting a record low in 2023. But the rate also began to climb higher in 2024, ahead of the recent immigration throttle. Supply began to improve before demand fell, despite still lagging population growth.
Rental Vacancy Surges In Toronto and Vancouver
The most surprising part of the data is where the vacancies are climbing. One would assume small cities where land is relatively cheap would fuel the supply. In reality, markets with notoriously slim supplies are the ones leading the way. Toronto’s vacancy rate hit 3.0%, the highest since the pandemic. Meanwhile, Vancouver reached 3.7%, marking the highest rate since 2000. That’s right—a 25-year high.
Canadian Rental Prices Are Rising With Vacancies
Despite rising vacancies, renters aren’t seeing much price relief. The cost of an average 2-bedroom apartment hit $1,550 in 2025, rising 5.1% from 2024. That’s lofty growth in contrast with a 2% inflation target, even with a 3.5% jump in wages over the same period.
Toronto and Vancouver have seen growth slow with the rise, according to the agency. However, they also observed acceleration in more affordable markets like Halifax and Montreal. The result is a narrowing gap between traditionally affordable and expensive markets. Not only is it harder to find an affordable unit in expensive cities. It’s also harder to save money by moving to smaller cities with less robust employment.
Canada’s rental crisis has seen minor progress over the past two years. Shifting from a crisis of inventory to a crisis of affordability still means it’s a crisis though. Sticky prices may be a sign of resilience or a pause before reality hits landlords. The flood of new completions set to arrive in the coming months are likely to motivate some clarity.
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