Canada Adds Record Rental Units in 2024, but Affordability Remains a Challenge

A 4.1% rise in purpose-built rental supply slowed rent growth, but higher-priced units dominate the market, limiting accessibility for average renters.

• Canada's purpose-built rental supply grew by 4.1% in 2024, the highest annual increase in over 30 years, according to CMHC.
• Despite the increase in supply, affordability issues persist, as most new units cater to higher-income households, leaving average and lower-income renters strained.
• The national vacancy rate for purpose-built rentals rose to 2.2% from a record low of 1.5% in 2023, reflecting the impact of increased supply.
• Average rent growth for two-bedroom apartments slowed to 5.4% in 2024, down from 8% in 2023, while turnover units saw rent hikes of 23.5%.
• Rental price growth varied across cities, with Toronto experiencing the smallest increase at 2.7%, while Calgary led major markets with the highest rent growth driven by strong demand.

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