Canada Multifamily National Report

Vacancy rate to remain tight 2024. Canada’s multifamily vacancy rate dropped to 1.5 per cent in 2023, the lowest level on record. Demand tailwinds, including historic population growth, robust employment gains and elevated homeownership costs, pushed demand ahead of supply, resulting in the ultra-low vacancy rate and an 8.4 per cent rent increase. In 2024, however, Canada’s population growth is projected to soften, and job creation is expected to moderate. Demand for purpose-built rentals, as a result, will increase at a milder pace. With total completions also reaching a new high, the national vacancy rate will stabilize around 1.5 per cent. This will likely cause rent growth to moderate but hold above the nation’s long-term standard, given still healthy demand dynamics amid ongoing population expansion and homeownership challenges.