Canada Multifamily National Report

New equilibrium in the making. With the initiation of the Bank of Canada’s interest rate cuts and the recent overhaul of the nation’s immigration policy, the multifamily sector is experiencing changing market forces. As rental demand growth moderates amid slower population gains, a weakening job market and an easier transition to homeownership given falling borrowing costs, an increase in completions will help stabilize the vacancy rate at a low level. Although rents will continue to rise, the pace of increase is expected to soften as the market approaches a new equilibrium. Additionally, Canada’s rental market is expected to see diverging performance across regions. Markets in Alberta are anticipated to tighten further due to its distinctive economic and demographic factors, while some larger metros may experience a slight pullback.