Canada Rental Housing Shortage to Quadruple by 2026 Says RBC Report
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According to a report by Royal Bank of Canada, Canada's rental housing shortage is set to quadruple to 120,000 units by 2026 without a significant boost in stock. The report suggested that Canada would need to add 332,000 rental units over the next three years, marking an annual increase of 20 per cent compared with the 70,000 units built last year, in order to reach an optimal vacancy rate of three per cent. Canada's vacancy rate fell to 1.9 per cent in 2022, its lowest point in 21 years, from 3.1 per cent in 2021, with the highest annual increase in rent growth on record, at 5.6 per cent for a two-bedroom unit, being driven by competition for units. The slow growth in Canada's two most populous cities, Toronto and Montreal, has been outpaced by rapidly increasing demand, partly fuelled by high immigration levels, meaning that annual federal immigration targets set to grow eight per cent by 2025, is unlikely to let up demand.
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