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Economic Viewpoint

Desjardins Rental Market Outlook

Rent Inflation Is Slowing Thanks to Easing Demand and Rising Supply

November 12, 2025
Kari Norman, Economist • Maëlle Boulais-Préseault, Senior Economist

Highlights

  • Rental housing supply has surged in Canada, with purpose-built rental construction accelerating after decades of limited growth. The national rental stock under construction expanded by more than 25% in the first half of 2025, led by Quebec.
  • Purpose-built rentals form only part of the rental supply. Condominium apartments—especially in Toronto and Vancouver—have increasingly filled the gap between demand and supply, although activity in this segment has taken a turn for the worse. In contrast, Montreal continues to rely more heavily on its large stock of traditional rental units.
  • Rental demand is expected to soften as population growth slows following federal measures to reduce immigration levels, though the impact will vary across provinces.
  • Rent inflation is expected to moderate in the short term, as easing population growth and improved housing supply reduce upward pressure—though regional disparities and structural constraints may influence how this trend unfolds.

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Desjardins Rental Market Outlook (PDF, 423 KB)
NOTE TO READERS: The letters k, M and B are used in texts, graphs and tables to refer to thousands, millions and billions respectively. IMPORTANT: This document is based on public information and may under no circumstances be used or construed as a commitment by Desjardins Group. While the information provided has been determined on the basis of data obtained from sources that are deemed to be reliable, Desjardins Group in no way warrants that the information is accurate or complete. The document is provided solely for information purposes and does not constitute an offer or solicitation for purchase or sale. Desjardins Group takes no responsibility for the consequences of any decision whatsoever made on the basis of the data contained herein and does not hereby undertake to provide any advice, notably in the area of investment services. Data on prices and margins is provided for information purposes and may be modified at any time based on such factors as market conditions. The past performances and projections expressed herein are no guarantee of future performance. Unless otherwise indicated, the opinions and forecasts contained herein are those of the document’s authors and do not represent the opinions of any other person or the official position of Desjardins Group.