RBC report on rental housing shows need for more

A report from RBC shows that Canada’s stock of rental housing boomed in 2022, but demand is expected to grow even faster. “Without a significant boost in rental stock, Canada’s rental housing gap could exceed 120,000 by 2026—quadrupling the current deficit,” the report says. “This will tip the housing market into a greater state of imbalance and drive the optimal vacancy rate of 3% even further out of reach.”

New rental housing is being absorbed by our growing population faster than homes can be built. The report points to increased in-migration and a shift to rental accommodation because of the higher costs of home-ownership.

“The best way to meet current and future demand, as well as provide stability (and hopefully greater affordability) in the rental market is to considerably grow the supply of purpose-built rentals.”