The latest Yardi Canadian National Multifamily Report (Q4 2025) shows that while the market is cooling after years of record growth, rental housing remains resilient and demand continues across most provinces.

1. Economic Pressure and Slower Growth
Canada’s economy has hit some headwinds. New tariffs have slowed exports, pushing GDP growth down to just 1.0%, while unemployment sits at 7.1%. Population growth has also eased, marking the slowest second-quarter increase since 1946, largely due to fewer non-permanent residents entering the country. Even so, rental demand remains solid, especially in well-managed, professionally operated buildings.

2. Rent Growth Slows, but Halifax Shines
After years of rapid gains, national rent growth slowed to 3.9% annually, with the average rent now $1,734 per month. Here’s how some key cities performed:
- Halifax: +5.9% year-over-year, leading the country thanks to its growing tech sector.
- Edmonton & Saskatoon: +4–5% growth, supported by affordability.
- Toronto & Calgary: The weakest increases, with Calgary only at +1.1%.
This softening trend suggests that markets are finding balance after several years of tight conditions.

3. Vacancy Rates Creep Up
The national vacancy rate rose to 4.3%, up 1.1 percentage points from last year. Highest: Calgary (5.8%) and Montreal (5.6%). Lowest: Winnipeg (2.4%) and Halifax (2.8%). While higher vacancies signal easing conditions, most markets remain far tighter than pre-pandemic norms.

4. Tenant Turnover and Leasing Trends
Lease-over-lease rent growth for new tenants cooled to 2.4%, down from 9.1% a year ago. National turnover reached 25%, the highest in three years. Tenants are staying about 36 months on average, with the longest stays in Toronto (47 months) and Halifax (40 months). This shift reflects a more price-sensitive, mobile renter base, as affordability becomes a key factor.

5. Rising Operating Costs
According to the financial charts in the report, Ontario and Manitoba report the highest repair and maintenance expenses per unit, while Nova Scotia and Saskatchewan remain the most cost-efficient provinces. This highlights why smart property management—through preventative maintenance, vendor control, and technology—matters more than ever.

What It All Means for Property Owners
The truth is — Canada’s multifamily market is stabilizing, not shrinking. Rent growth is moderating, but demand is still strong and fundamentals remain healthy. At MU Property Management Ltd., we believe this period is about optimization—streamlining operations, strengthening tenant retention, and preparing for the next growth cycle. Because in real estate, steady hands win when the market shifts.

Source: Yardi Canadian National Multifamily Report – Q4 2025