The Canadian multifamily market is undergoing a profound shift. At this year’s Canadian Apartment Investment Conference (CAIC), experts described an industry that’s both challenged by cost pressures and invigorated by innovation. Developers, investors, and property managers alike are confronting the realities of high construction costs, shifting immigration policies, and evolving renter expectations—while also seizing opportunities in emerging markets and new operational models.
Benjamin Tal, Managing Director and Deputy Chief Economist of CIBC Capital Markets Inc., kicked off the conference highlighting upcoming challenges in the Canadian market, but emphasized a bright future to come. Below, we break down the key takeaways from the latest Canadian Apartment Investment Report, what they mean for Canada’s multifamily sector in 2025 and beyond, and how Tal’s hopeful outlook is realistic.
Tariffs, Cost Inflation & Stabilization
Cost inflation continues to dominate conversations. Across the country, pro formas are being squeezed by escalating materials prices, government fees, and financing costs. “Even with pockets of growth, pro formas are under pressure from construction, government fees and financing costs,” said Riz Dhanji, President of RAD Marketing.
Similarly, Altus Group’s Ontario CRE Market Report found that developers remain cautious amid rising tariffs and capital uncertainty, with many projects postponed until cost and demand conditions stabilize. Still, policy shifts like GST relief and development charge reductions offer some relief, especially in Toronto and other large metros.
“The Canadian multifamily market is evolving faster than ever,” said Josh Middlebrooks, President of Luxer One. “Operators who integrate secure, automated, and resident-centric technologies now will be positioned to scale efficiently as Purpose-Built Rental growth accelerates. Luxer One’s role is to remove operational friction so managers can focus on what matters most: their residents.”
Housing Shortage, Immigration & Demand Drivers
Canada’s housing crisis remains acute. The CAIR report notes that while immigration moderation has slightly eased immediate pressure, demand remains far ahead of supply. Jamie Cooper, President of Development & Income Properties at Dream Unlimited, observed that “slower immigration plus new completions will temper growth, but over the medium term immigration will normalize and remain one of the strongest drivers of housing demand in the country”.
Ugo Bizzarri, CEO of Hazelview Investments, added that while a temporary slowdown may relieve pressure, “Canada still faces a significant housing deficit,” estimating a continued shortfall of millions of units by 2030.
This reality underscores why purpose-built rental (PBR) and build-to-rent (BTR) models are increasingly essential. Even as vacancy rates rise slightly, averaging around 3–3.5% nationally, the gap between affordability and availability remains vast.
The Pivot to Purpose-Built Rentals
Few topics dominated this year’s CAIC discussion like the ongoing pivot from condos to BTR. “Everyone is pivoting to rental because nothing else works,” said Beau Jarvis, President & CEO of Wesgroup Properties. “Viability largely depends on CMHC, which helped facilitate 88 percent of all rental housing starts year-to-date”.
Despite the challenges, industry leaders remain optimistic about the long-term value of PBR communities. Zev Kershman of DashQ described them as “the building blocks of vibrant, connected communities across Canada,” emphasizing how they redefine what it means to rent in a country where ownership is increasingly out of reach.
For operators, this shift comes with new operational expectations from centralized amenities to resident-first service models.
“We’re seeing Canadian property teams demand not just smart hardware but smart operations,” said Layne Spencer, VP of Sales & Marketing at Luxer One. “Centralized package management delivers both security and efficiency, two things that directly impact net operating income and resident satisfaction.”
Regional Highlights: Western Canada Leads the Way
Western Canada continues to stand out as the “Texas of the North.” With lower living costs and expanding industrial activity, Alberta and Saskatchewan are experiencing some of the strongest multifamily growth in the nation. According to Cynthia Jagger, EVP at CBRE, British Columbia is also seeing a “wave of completions that’s softening luxury rental demand but reinforcing affordability challenges”.
Meanwhile, the Altus Group report highlights that Ontario markets, particularly the Greater Toronto Area, are in a phase of recalibration, with residential land investment down over 40% year-over-year—signaling fewer starts but potential stabilization ahead. The takeaway: opportunity is migrating westward, where cost structures and policy environments remain more development-friendly.
Innovation, Modular Housing & ESG Alignment
New solutions are emerging to accelerate delivery and improve performance. Geoff Cape, CEO of Assembly Corp, emphasized that modular construction is “part of a necessary suite of innovations—better-integrated and standardized systems and processes”. While modular adoption still faces financing and permitting hurdles, it represents an important step toward scalable affordability.
The CAIR report also underscored how ESG is maturing into a standard business practice rather than an aspiration. “ESG is a strategic imperative in today’s landscape,” said Ugo Bizzarri of Hazelview Investments, noting how energy-efficient technologies and community engagement programs are becoming foundational across portfolios.
Luxer One’s solutions complement these ESG priorities. By reducing missed deliveries, minimizing theft, and limiting unnecessary trips, centralized package systems help properties operate more efficiently and sustainably. This aligns daily operations with long-term environmental goals.
Opportunities & Optimism Ahead
Even amid cost volatility and policy change, optimism endures. Data-driven asset management, modular innovation, and sustainable retrofits are setting a new standard for operational excellence. As Peter R.J. Mills of Wyse Meter Solutions put it, “The challenge is retrofitting older buildings affordably while meeting stronger environmental expectations on the horizon”—a challenge many operators are rising to meet.
With governments investing heavily in BTR incentives, developers pursuing adaptive reuse, and technology modernizing site-level operations, the next phase of Canadian multifamily growth will be defined by agility and alignment.
How Luxer One Supports Canadian Multifamily Managers
As multifamily operators adapt to shifting demographics, policy reforms, and renter expectations, Luxer One helps simplify the most complex part of day-to-day operations: package management.
- Centralized package management: Secure, modular systems that handle high volumes efficiently and reduce staff workload.
- Enhanced security: Theft prevention and audit trails that protect resident trust and property reputation.
- Operational scalability: Perfect for expanding BTR portfolios that demand consistent service delivery across regions.
To help managers evaluate their best-fit solution, Luxer One offers a Guide to Package Management for Multifamily Communities, a free resource packed with best practices and vendor selection strategies tailored to multifamily properties.
Conclusion
The Canadian Multifamily Market in 2025 is evolving rapidly. Cost inflation, immigration adjustments, and rising vacancy rates are reshaping strategy, but innovation and purpose-built rentals are paving the way forward. Developers are building smarter, operators are centralizing services, and residents are demanding more secure, connected experiences.
“We’re seeing Canadian property teams demand not just smart hardware but smart operations,” said Layne Spencer, VP of Sales & Marketing at Luxer One. “Centralized package management delivers both security and efficiency, two things that directly impact net operating income and resident satisfaction.”
Learn how to streamline operations, strengthen security, and future-ready your communities when you contact us today!
