Canada’s rental vacancy holds steady at 3.2 per cent

February 28, 2022



The national vacancy rate remained the same in 2021 following a pandemic-induced spike in 2020. The average vacancy rate for purpose-built rental apartments across all Canadian centres (with a population of at least 10,000) was 3.1 per cent in October 2021—a statistically insignificant change from 3.2 per cent in 2020, according to the annual Rental Report from Canada Mortgage and Housing Corporation (CMHC).
Vacancy rates decreased or held steady in most centres, with Toronto among the exceptions. Vacancy rates declined in 21 of the 37 census metropolitan areas (CMAs) surveyed—including Vancouver, most centres in Alberta, Saskatchewan and the Atlantic.
Vacancy rates rose in only three centres: Toronto, Winnipeg and Abbotsford-Mission (in B.C.). Rates held steady in the remaining 13 centres, including Montréal.
This delayed recovery held down the pace of growth in rental demand in Toronto, placing upward pressure on Toronto’s vacancy rate. The Prairies generally continued to see the highest vacancy rates.
Rental demand generally kept pace with supply growth except in Toronto.
Between October 2020 and October 2021, the rental market universe grew by about 40,000 purpose-built rental apartment units (or 1.9 per cent). Demand kept up with supply as the number of occupied apartments grew by roughly 41,000 units (or 2 per cent), resulting in a stable vacancy rate.
This growth represents a significant recovery in rental demand from October 2020. In October 2020, supply growth had outpaced demand growth by about 26,000 units, CMHC reports.
Condominium rental markets continued to be very tight outside the Prairies, with vacancy rates falling to zero in Victoria and remaining under 1 per cent in several other CMAs. The national average rent increased for two-bedroom rental condominiums. This average was driven by significant increases in Montréal (11.2 per cent) and Vancouver (21.4 per cent), as most other centres did not see statistically significant change in condominium apartment rent levels. Vancouver and Toronto continued to report the highest condominium rent levels in 2021.