The Bull Vs. Bear Case for Canada’s Rental Market

Canada's rental market experienced a dramatic shift in 2025, with vacancy rates rising to 3.1% nationally (the highest in a decade) due to record-high rental construction meeting slower population growth and reduced immigration. This has flipped the market from landlord-favored to renter-favored, with landlords now offering incentives like free months of rent to fill units.

• Vacancy hit 3.7% (highest since 1988), with landlords competing for tenants for the first time in a generation and offering significant incentives.
• Calgary maintained a balanced 5% vacancy despite adding 11% to its rental stock, thanks to strong interprovincial migration and employment.
• Despite rising vacancies, national rents increased ~5%, with landlords raising rates on existing tenants, and affordable units remain scarce.

Exchange-Traded Funds (ETFs) | BMO Global Asset Management

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