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

Public Realm Improvements

Public realm improvements are enhancements to public spaces such as sidewalks, parks, plazas, and streetscapes, often funded or contributed by. more

Mortgagee in Possession

A mortgagee in possession is a lender who takes control of a property after borrower default, but before foreclosure or power of sale. The lender. more

Lease Surrender Agreement

A lease surrender agreement is a negotiated contract between a landlord and tenant that ends a lease before its scheduled expiration. Terms may. more

Green Infrastructure

Green infrastructure refers to natural or engineered systems that manage stormwater, reduce heat, and improve sustainability in developments.. more

Escrow Holdback

An escrow holdback is a portion of funds withheld at closing and held in escrow until specific conditions are met, such as completion of repairs,. more

Underused Housing Tax

The Underused Housing Tax (UHT) is a federal annual 1% tax on the value of vacant or underused residential property owned by non-resident,. more

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