As a growing number of investors look to diversify their portfolios and generate passive income, multifamily real estate investing has become an increasingly popular option. Canada, in particular, offers a wealth of opportunities for multifamily real estate investing, with several cities experiencing strong population growth and a robust rental market. If you're looking to invest in multifamily real estate in Canada, here are the top markets to consider right now.

Toronto is Canada's largest city and one of the country's most active real estate markets. The city's population is growing rapidly, and demand for rental properties is high. According to data from the Canada Mortgage and Housing Corporation (CMHC), the average rent for a two-bedroom apartment in Toronto was $1,562 in October 2021. The vacancy rate was 1.1% during the same period. Toronto has a strong economy with a diverse range of industries, including finance, technology, and healthcare.

Vancouver is another large and rapidly growing city in Canada. Its population has been increasing steadily over the past decade, and demand for rental properties remains strong. According to CMHC data, the average rent for a two-bedroom apartment in Vancouver was $1,733 in October 2021, and the vacancy rate was 1.5%. Vancouver has a strong economy with a particular focus on technology, tourism, and natural resources.

However, even though both cities are growing rapidly and rents seem high, the prices are also reflective of the booming economy. Finding deals that offer stable cash flow is challenging and the rental laws might not be as favorable as in other provinces.

Montreal could be a great option, as it is the largest city in the province of Quebec and a significant economic hub in eastern Canada. The city has a diverse economy with significant employment in the technology, aerospace, and financial services industries. According to CMHC data, the average rent for a two-bedroom apartment in Montreal was $1,128 in October 2021, and the vacancy rate was 2.1%. If you want to invest in the multifamily space in Quebec, it would probably be beneficial to speak French as you’ll need to communicate with professionals, seller’s team, management companies and tenants, and not everyone speaks English. You could also benefit from hiring a real estate attorney who practices and specializes in real estate transactions in the province, as the laws, rules and regulations might differ.

I personally prefer cities in Alberta and there are a few reasons why. Edmonton and Calgary are major cities in western Canada and both are important economic hubs in the region. The cities have a diverse economy, with significant employment in the energy, construction, and technology industries. According to CMHC data, the average rent for a two-bedroom apartment in Edmonton was $1,128 in October 2021, and the vacancy rate was 3.3%. The average rent for a two-bedroom apartment in Calgary was $1,243 in October 2021, and the vacancy rate was 6.6%. While the vacancy rate may seem high, it has been decreasing steadily from a peak of 7.5% in 2020, and the market is expected to continue improving as the economy recovers. Due to rising housing prices, remote work and higher cost of living in other major markets in Canada, many people are moving to Alberta as it offers great quality of life, lower tax and affordable housing. If you want to know more about this market’s potential, check out my Multifamily Investment Guide at www.andrewsmith.com that dives deeper into multiple reasons to invest in multifamily real estate in Alberta. Regardless of the market you choose, conducting thorough research, working with a qualified real estate agent, and building a strong team, is required for success. If you want to expand your multifamily portfolio or get into the industry, I’d be happy to help. Connect with me at andrew@andrewsmithrei.com