Canada is facing a shortage of purpose-built rental housing, with economists predicting a deficit of 25K-30K units already. If the situation doesn’t improve, the shortage could quadruple by 2026, reaching over 120K units. Immigration growth and declining affordability are contributing to the problem, while purpose-built rental vacancy rates have fallen to 1.9%, the lowest point in 21 years. To address the issue, Canada needs to add 332K units to its current supply by 2026. While measures such as converting condos and commercial buildings into rentals could help, the economists suggest that the best way to meet demand and ensure rental market stability is to significantly grow the supply of purpose-built rentals.
By 2026, the rental housing shortage in Canada could reach more than 120,000 units
