Toronto Multifamily Market Report

While low, vacancy to remain on upward trajectory. Toronto’s multifamily market softened in 2025, with the vacancy rate edging higher as population growth slowed considerably. The deceleration was largely tied to increased departures of temporary residents, a shift that weighed more heavily on suburban submarkets with a high concentration of post-secondary institutions and student-oriented rental stock. In contrast, demand downtown proved more resilient. Outflows of temporary residents were partly offset by a renewed wave of renters relocating closer to the core, driven in part by expanded return-to-office mandates among major employers. This trend helped stabilize leasing conditions in central neighbourhoods even as outer areas saw higher vacancy. Looking ahead to 2026, population growth is expected to ease further, again reflecting lower immigration levels. This demographic headwind is likely to sustain upward pressure on the vacancy rate, particularly in nodes that had previously absorbed strong newcomer-driven demand.