Southwestern Ontario Multifamily Investment Forecast

Early signs of stabilization expected in new year. Southwestern Ontario’s multifamily sector entered 2026 after a challenging year. Slowing population gains and rising unemployment amid tighter immigration and trade disruptions weighed on rental demand. Meanwhile, completions reached an all-time high, pushing the vacancy rate to its highest level since 2012. Conditions are expected to improve modestly this year. The exceptional momentum in rental need driven by the post-pandemic population surge is unlikely to return. However, an industrial recovery — supported by lower interest rates, ongoing producer adaptation and a potential improvement in trade relations — should provide a backstop for leasing activity. Although the vacancy rate is still projected to rise as population growth cools further, stronger labour conditions and fewer deliveries will likely moderate the pace of increase. Beyond the near term, long-run fundamentals remain constructive. Affordability-driven resident inflows, a steadily diversifying economy and deeper integration with the greater Toronto area through expanding transit links will sustain long-term rental demand, reinforcing Southwestern Ontario’s appeal for apartment investors.