Record breaking Low Rental Vacancy Rates

For the second year in a row the strong rental demand has outpaced supply across Canada resulting in new lows for rental vacancy rates.

Even Calgary, previously known as the more financially accessible province, has tied Toronto in 2023 for the second- lowest vacancy rate, following Vancouver. Ironically, this is in large part due to the influx of migration from other provinces looking for a more affordable quality of living.

These low vacancy rates have resulted in steep hikes in rental prices everywhere and Canadians across the country are encountering difficulties finding affordable living situations. Average rent growth rose from 5.6%- 8% within the last 12 months outpacing both inflation and wage growth.

So what does this mean for our future?

The rental market in 2024 looks to remain the same with low vacancy rates and increases in prices. However, there is hope for stabilization as declining interest rates offer potential home buyers a way to move out of the rental market into the home owner market.