Canada Purpose-Built Rentals

Builders and government favouring rental construction. Record population growth following the pandemic, waning demand for condominiums and concerted efforts from all levels of government have fuelled the development of rental properties across Canada. Beginning in 2023, the downturn in the condo market — driven primarily by mounting barriers to homeownership, shifting household preferences and economic uncertainty — has prompted developers to meet surging population growth through the rental segment of the housing market. Government support has also aided development activity, coming in the form of federal financing and tax incentives, in addition to municipal-level zoning reforms and deregulation. As a result, on a trailing 12-month basis, completions of purpose-built rentals rose from 45,000 units in 2019 to 85,000 units as of April 2025. Construction starts have followed a similar trajectory, suggesting that new deliveries are likely to remain elevated over the coming years.