New data reveals dramatic shifts in the apartment market
TORONTO, ON, July 18, 2024 – Yardi® Canada has released its latest 2024 multifamily report, analyzing aggregated and anonymized client data from 476,000 units across 5,400 Canadian properties.
The report provides a detailed overview of the Q2 2024 apartment performance, revealing a slight cooling in the market despite sustained high housing demand relative to supply. Key metrics like rent growth and vacancy rates have moderated from recent peaks but remain strong by historical standards.
Amid this backdrop, Canada’s economic growth remains modest, with GDP rising at a 1.7 percent annual rate in the first quarter, according to Statistics Canada. The unemployment rate stands at 6.4 percent as of June, with notable differences among age groups.
Key findings from the report include:
- New builds: Canada delivered over 110,000 apartments in 2023, but this isn’t enough to meet the growing housing demand, highlighting a need for more construction efforts.
- Rent growth: The average national in-place annual rent growth rate declined to 6.3 percent, primarily due to limited housing supply and rising population growth.
- Relocation challenges: The average national vacancy rate hit to three percent, the highest since Q2 2022. Renters are staying put due to the high cost of living, making moving less affordable.
“Canada’s apartment market is demonstrating signs of cooling, but remains fundamentally strong,” said Peter Altobelli, vice president and general manager of Yardi Canada Ltd. “While rent growth has begun to decelerate from its peak, it persists at a robust level due to ongoing supply constraints. The disparity between housing demand and available units continues to be a significant factor shaping the rental landscape.”
For more detailed insights, download the full report here.
About Yardi
Celebrating its 40-year anniversary in 2024, Yardi® develops industry-leading software for all types and sizes of real estate companies across the world. With over 9,000 employees, Yardi is working with our clients to drive significant innovation in the real estate industry. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.