Canada’s Rental Market: Cooling Continues in Q2 2025

The Canadian rental market is showing clear signs of cooling in the second quarter of 2025, according to recent data from Yardi. National rent growth has decelerated while vacancy rates have edged higher, suggesting a shift from the tight rental conditions seen throughout 2023 and early 2024. This trend is especially notable in urban centres like Toronto and Vancouver, where soaring demand had previously driven rapid price increases and ultra-low vacancy levels.

Rising vacancies indicate that some renters may be hesitating to commit due to affordability pressures, economic uncertainty, or an increase in available rental supply. At the same time, rent growth has plateaued in many provinces, reflecting a more competitive environment for landlords.

For property owners and managers, this shift underscores the importance of focusing on tenant retention, offering modern amenities, and potentially introducing incentives such as free rent periods, flexible lease terms, or unit upgrades to stay attractive in a market with expanding choices for renters.

Landlords operating in regions that are seeing a surge in completions or new rental developments may need to reassess pricing strategies or reevaluate marketing efforts to sustain strong occupancy rates. The remainder of 2025 may bring further softening, making adaptability key to success in Canada’s evolving rental landscape.
https://www.yardibreeze.ca/blog/2025/05/q2-yardi-mf-report-2025/