CMHC Report Rental Prices Dip Amid Slower Immigration and Job Market Strains
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Canada Mortgage and Housing Corp’s mid‑year rental market update (released July 9, 2025) finds that rising rental supply is driving down advertised rents across major Canadian cities. Notably, two‑bedroom condo and purpose‑built rental prices in Halifax dropped by approximately 5–8% year‑over‑year, with similar declines (around 3.5–5%) in Vancouver, Calgary, and Toronto. Meanwhile, Edmonton, Ottawa, and Montréal still saw rent increases, though the growth slowed compared to previous quarters.
Two key factors behind this softening are reductions in international migration and weaker labour market conditions. Provinces like B.C., Ontario, and Nova Scotia experienced fewer student and work‑permit arrivals in Q1 2025, which dampened rental demand. Across many regions, youth unemployment and above‑average graduate joblessness have further constrained new renter demand. While Vancouver and Toronto show signs of weakening employment, cities like Halifax, Calgary, and Edmonton remain relatively resilient in labour performance.
Finally, CMHC notes that October 2024 marked the lowest tenant turnover since data collection began in 2016. However, recent higher vacancy and rental incentives have slightly increased turnover. Looking ahead to 2025, with flat population growth and ongoing employment uncertainties, the market may persist in adjusting. This will particularly affect Ontario’s purpose‑built rental stock, leading to extended lease‑up periods and rising vacancies—but continued supply growth is still seen as essential to address long‑term housing affordability.
Read the full article on: REAL ESTATE MAGAZINE
