Canada’s shortage of rental housing could quadruple by 2026

Canada’s stock of rental housing boomed in 2022, growing at 2.4%—the fastest pace since 2014. That boost has never been needed more. With affordability challenges pushing home ownership rates to a 30-year low and annual federal immigration targets set to grow 8% by 2025, strong demand for rented accommodation is unlikely to ease.

The growth in supply has been uneven across the country. Among Canada’s six largest CMAs, the biggest gains in purpose-built rental stock were in Calgary (+7.4%) and Ottawa-Gatineau (+5.5%). The smallest percentage increases were in Canada’s most populous cities—Toronto (+2.1) and Montreal (+1.4%). The latter urban centres are among the most popular destinations for newcomers, welcoming an estimated 32% and 10% of international immigrants respectively last year. The slow growth in rentals in these cities will be especially problematic as demand for rented accommodation continues to outgrow supply. LINK TO ARTICLE