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BMO Comments on Canada's Residential Rental Housing Market

BY MT Newswires | ECONOMIC | 06/17/25 06:51 AM EDT

06:51 AM EDT, 06/17/2025 (MT Newswires) -- Canadian housing starts continue to hold up despite

weak buyer demand, said Bank of Montreal (BMO).

Starts for homeownership and condos have trended at around 110,000 annualized units seasonally adjusted so far this year, which is down more than 20% from recent norms through 2022 and 2023, noted the bank.

Purpose-built rental starts, however, have filled the gap, also trending at right around 110,000 annualized units so far this year, stated BMO. In fact, the longstanding gap

between ownership/condo starts and purpose-built rental starts has now closed.

The supply-demand dynamic for the rental market -- a sudden cooling of immigration-led demand, but long lead times on supply -- is likely to pressure rents down in the year or more ahead.

At the same time, this does little to alleviate shortages of family-sized single-detached housing, especially in the major cities, added the bank.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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