Rental demand across Canada is recovering. This was generally supported by improvements in economic conditions and a partial recovery in net migration. It was bolstered by high vaccination rates and easing pandemic restrictions into Fall 2021.
The vacancy rate for purpose-built rental apartments held steady in 2021 across all Canadian centres with a population of 10,000+ in 2021. This is following the pandemic-induced spike of 2020.
The pace of rent growth slowed to a 3-year low and moved closer to the long-run average. Several centres were exceptions to the national trend and saw the pace of rent growth increase, including Vancouver and Montréal.
Purpose built rental market (In Canadian centres
with population 10,000+)
Vacancy rate 3.1%
Average 2‑bedroom rent $1,167 Up by 3.0%
Condominium apartment market (In 17 Canadian
centres surveyed)
Vacancy rate 1.8%
Average 2‑bedroom rent $1,771
Rental demand generally kept pace with supply growth, except in Toronto. At the provincial level, supply continued to outpace demand in Ontario and Manitoba by significant margins.
Rental affordability continues to pose a significant challenge across the country.
Find key highlights for Canada's largest centres below. Other census metropolitan areas are detailed in the Rental Market Report.
Vancouver
Purpose built rental market (In Canadian centres
with population 10,000+)
Vacancy rate 1.2%
Average 2‑bedroom rent $1,824 Up by 2.4%
Condominium apartment market (In 17 Canadian
centres surveyed)
Vacancy rate 0.8%
Average 2‑bedroom rent $2,498
The purpose-built rental apartment vacancy rate decreased from 2.6% in 2020 to 1.2% in 2021 — this was similar to 2019. The return of students and increased migration to the region grew rental demand faster than supply.
The tightening conditions intensified existing imbalances in the Vancouver rental market. Our data shows that lower-income households face significant challenges finding units that they can afford.
Rents increased 2.1% overall with the turnover of units to new tenants. (Rents were frozen for existing tenants.)
Asking rents for vacant units declined compared to 2020 due to the absorption of new, prime location apartments with high rents that had previously been vacant.
The number of condominium apartments in long-term rental increased by 3.3% (2,550 units). While this was a much slower pace than in 2019 and 2020, rental condominiums continue to be an essential source of new rental supply for the region.
Edmonton
Purpose built rental market (In Canadian centres
with population 10,000+)
Vacancy rate 7.3%
Average 2‑bedroom rent $1,270 Down by 0.5%
Condominium apartment market (In 17 Canadian
centres surveyed)
Vacancy rate 5.3%
Average 2‑bedroom rent $1,412
The purpose-built rental apartment vacancy rate was 7.3% in October 2021, statistically unchanged from October 2020. Rental demand kept pace with supply increases. This was backed by improved labour market conditions, return of students and improvement in international migration.
Stability in the vacancy rate resulted from record growth in the purpose-built universe. Also, from record increase in occupancy based on data dating back to 1990.
Same-sample apartment rents decreased slightly. Higher vacancies placed downward pressure on rent levels and landlords continued to offer incentives to attract tenants.
Turnover increased, with higher vacancies, lower rents and comparable carrying costs for entry-level ownership options likely contributing.
An adequate supply of affordable purpose-built rental options continues to be a challenge for lower-income households. This is less so than other largest CMAs in Canada.
Calgary
Purpose built rental market (In Canadian centres
with population 10,000+)
Vacancy rate 5.1%
Average 2‑bedroom rent $1,355 Flat
Condominium apartment market (In 17 Canadian
centres surveyed)
Vacancy rate 4.2%
Average 2‑bedroom rent $1,524
The purpose-built apartment vacancy rate dropped to 5.1% as economic conditions strengthened.
The average rent level remains stable at $1,222 as non-price rental incentives decrease.
Newer units can see an average of 30 – 60% price premiums over existing supply.
New additions in the Beltline and Northwest zone saw the most substantial purpose-built rental universe growth from buildings returning to the market.
Toronto
Purpose built rental market (In Canadian centres
with population 10,000+)
Vacancy rate 4.4%
Average 2‑bedroom rent $1,666 Up by 1.5%
Condominium apartment market (In 17 Canadian
centres surveyed)
Vacancy rate 1.6%
Average 2‑bedroom rent $2,355
The lingering effects of the pandemic continued to impact demand in the purpose-built rental market negatively. It led to a second consecutive annual increase in the vacancy rate.
Despite increased rental supply, the stock of units more affordable to low- and middle-income renter households declined.
Average rent growth for apartments slowed to its lowest level since 2007. This is owing to increased competition among landlords and provincial pandemic response measures limiting rent increases for existing tenants.
The vacancy rate in the condominium rental apartment market held steady as a substantial increase in demand was met by a comparable supply response.
Ottawa
Purpose built rental market (In Canadian centres
with population 10,000+)
Vacancy rate 3.4%
Average 2‑bedroom rent $1,550 Up by 1.3%
Condominium apartment market (In 17 Canadian
centres surveyed)
Vacancy rate 0.8%
Average 2‑bedroom rent $1,818
Demand increased sufficiently to offset the addition of a considerable number of units to the rental housing stock. The vacancy rate therefore remained stable.
Recent increases in migration have caused net migration to rise compared to 2020. It hasn’t returned to its pre-pandemic level.
Despite one of the highest vacancy rates in the last 25 years, options are limited for lower-income households.
After 3 years of strong growth, the average rent increased by 2.2% between October 2020 and October 2021. This is below the average for the last 10 years.
Montréal
Purpose built rental market (In Canadian centres
with population 10,000+)
Vacancy rate 3.0%
Average 2‑bedroom rent $932 Up by 3.9%
Condominium apartment market (In 17 Canadian
centres surveyed)
Vacancy rate 1.4%
Average 2‑bedroom rent $1,420
In 2021, the vacancy rate remained stable at 3.0%. It remained higher on the Island of Montréal (3.7%) than in the suburbs (1.1%). It’s possible that some households migrated from the Island to the suburbs to live in larger or newer units at rents that are often lower. The strong increase in prices may have limited access to homeownership for young suburban households.
The gradual resumption of international migration and the return of in-person classes decreased the vacancy rate in the downtown area. That said, it remained at a higher level than before the pandemic.
The low vacancy rates in several sectors continued to push rents up (+3.7%).
The vacancy rate for rental condominiums decreased in 2021, reaching 1.4%. This decrease was attributable to the rebound in rental demand (international and student) and a level of supply that remained practically unchanged.
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