A new report from RBC Economics forecasts that Canada’s shortage of rental housing will quadruple in the next four years.
“Without a significant boost in rental stock, Canada's rental housing gap could exceed 120,000 (units) by 2026 — quadrupling the current deficit,” reads the RBC report.
The report adds that while the optimal rental vacancy rate in Canada is 3%, that level will not be achievable without an increase in supply of 332,000 new units between now and 2026.
Rental affordability is also becoming an issue in Canada.
Canada Mortgage and Housing Corporation (CMHC) says that the average monthly price for a two-bedroom rental unit rose 5.6% to $1,258 in 2022.
In larger cities such as Toronto and Vancouver, the average two-bedroom price of a rental unit rose 9% last year to $1,930.
The report says cities such as Calgary and Ottawa saw the biggest increase in new rental units in 2022, while Toronto and Montreal are lagging behind and now face severe shortages.
The RBC Economics report calls on Canadian municipalities to “considerably grow the supply of purpose-built rentals” in coming years.
