New multi-family supply is dominating the housing conversation across Canada. Towers are rising, cranes are everywhere, and delivery numbers continue to climb. But the most important question is not how much supply is being built. It is who that supply is actually built for. Because not all rental housing serves the same renter. And not all demand competes equally with new construction.
| Key Takeaways |
- Canada’s rental market is highly segmented, with new multi-family supply concentrated in higher income segments rather than serving the full renter spectrum.
- Workforce renters, representing roughly 40 percent of renter households, remain underserved and largely priced out of new construction.
- Supply pressure is not evenly distributed. Vacancy and leasing challenges are emerging first in higher-priced, amenity-rich product.
- Redevelopment-driven supply continues to remove older, more affordable units, reinforcing structural demand for workforce-oriented housing.
- In a segmented market, housing that serves needs-based demand has historically demonstrated greater stability across cycles.
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