Apartment vacancy falls as Canada’s rental market begins to stabilize
Canada’s apartment vacancy rate declined in the second quarter for the first time in more than two years, offering an early indication that the rental market may be stabilizing after a prolonged period of softening.
The national vacancy rate fell 40 basis points to 4.7% in Q2, ending nine consecutive quarters of increases, according to the latest Canadian National Multifamily Report from real estate software and data provider Yardi.
Despite the quarterly improvement, vacancy remained 60 basis points above the 4.1% recorded a year earlier, reflecting the impact of new purpose-built rental supply completed over the past year.
“After two years of rising vacancy, the market is finally tightening even as new purpose-built supply keeps coming online,” said Peter Altobelli, president of Yardi Canada.
Vacancy rates varied considerably across major markets, from a low of 2.4% in Halifax and 2.8% in Winnipeg to 6.8% in Calgary and 5.8% in Edmonton, although rates in both Alberta cities declined from the previous quarter.
Vacancy remained highest in Alberta’s two largest cities, reaching 6.8% in Calgary and 5.8% in Edmonton, although both rates declined from the previous quarter.
Rent growth continues to cool
The improvement in occupancy came as rent growth slowed further, with average in-place rent rising by just $6 during the quarter to $1,774—the smallest quarterly increase since 2021—while annual growth eased to 2.2%.
Yardi said most of the remaining growth in in-place rents is coming through lease renewals. Residents are also moving less frequently, with the average length of stay reaching approximately 38 months nationally.
The combination of slower rent growth, longer tenancies and vacancy remaining above year-ago levels points to a more balanced rental market following several years of acute shortages and rapid rent increases.
At the same time, Yardi said the development pipeline is expected to slow after a wave of purpose-built rental completions in 2025. A pullback in construction could limit future supply gains if rental demand strengthens.
Asking rents remain above renter budgets
Despite the broader signs of stabilization, a separate Rentals.ca survey suggests affordability remains a significant obstacle for people currently searching for a home.
Nearly three-quarters of respondents were looking for a rental priced at $2,000 a month or less, below the national average asking rent of $2,033 reported in Rentals.ca’s July National Rent Report.
The gap was particularly pronounced in Vancouver and Toronto, where average asking rents reached $2,715 and $2,537, respectively, but only 48% and 36% of respondents reported budgets of at least $2,000.
In Montreal, most respondents were budgeting between $1,000 and $1,499, compared with an average asking rent of $1,949. Most Alberta respondents were also looking below $1,500, while the average asking rent in Calgary stood at $1,820.
High rents were identified as the leading challenge in every market covered by the survey. In Alberta, 49% of respondents said they were moving specifically to find a more affordable home, the largest share of any region surveyed.
Together, the reports suggest rental-market conditions are easing, although affordability remains a challenge. Yardi’s findings cover more than 533,000 rental units across approximately 6,100 properties, while the Rentals.ca survey reflects 1,194 active rental seekers and is not representative of all Canadian renters.
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Last modified: July 22, 2026
