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Vacancy Rate

Learn about vacancy rates in Canadian real estate — what they are, how they’re calculated, and why they matter for landlords and investors.

Vacancy Rate

August 01, 2025


What is Vacancy Rate?

The vacancy rate is the percentage of all available rental units in a property or market that are unoccupied at a given time.

Why Vacancy Rate Matters in Real Estate

In Canadian real estate, vacancy rates are a key indicator of rental market health, property performance, and future rental pricing trends.



How it’s calculated:
  • (Vacant units ÷ total units) × 100
  • Can be measured for specific properties, submarkets, or regions



Understanding vacancy rates helps landlords adjust leasing strategies and investors evaluate income potential.

Example of Vacancy Rate in Action

The city’s apartment vacancy rate dropped to 2%, signalling strong rental demand and limited supply.

Key Takeaways

  • Measures percentage of unoccupied rental units
  • Indicates market supply and demand balance
  • Affects rental pricing and property values
  • Used by landlords, investors, and lenders
  • Balances with occupancy rate for full market view

Related Terms

Additional Terms

Back-End Ratio

The back-end ratio, or debt-to-income ratio, measures the percentage of a borrower’s gross monthly income spent on total monthly debt obligations,. more

Airspace Rights

Airspace rights are the legal rights to control, use, or sell the space above a parcel of land, separate from the ownership of the land itself.. more

Absorption Rate Analysis

Absorption rate analysis is the evaluation of how quickly available properties in a given market are being sold or leased during a specific time period.. more

Sustainability

Sustainability in real estate refers to designing, constructing, and operating properties in ways that minimize environmental impact, support social. more

Soft Costs

Soft costs are the indirect expenses incurred in a construction project that are not directly tied to physical building materials or labour.. more

Rent Cap

A rent cap is a government-imposed limit on the amount landlords can increase rent for existing tenants within a specific period, typically one year.. more

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