A vacancy sign is seen outside of a rental apartment in Vancouver on Thursday. Vacancies have reached 3.7 per cent in the city this year – 'the highest level seen in 30 years,' according to CMHC.

Canada’s rental market is softening, but not nearly enough to make housing feel affordable for many tenants, according to the Canada Mortgage and Housing Corporation.

The national vacancy rate for purpose-built rentals has jumped to more than 3 per cent in 2025 compared with 1.5 per cent just two years prior, according to the report released on Thursday. CMHC said that while rent prices continue trending upwards overall - often among larger, more livable units - the pace of increases has slowed, even as landlords dangle more incentives.

Nationally, rents rose just above 5 per cent on averag

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