Commercial Real Estate Podcast (First National)

Rising Vacancies, Softer Rents, and What Comes Next with Anthony Passarelli, Lead Economist at CMHC – Southern Ontario

In this episode, lead economist Anthony Passarelli discusses the current rental landscape across Southern Ontario, highlighting rising vacancies and softening rents in markets like Windsor, London, and Kitchener. He explains that a surge in new construction—especially purpose‑built rentals—has outpaced demand, leading to higher vacancy rates and modest rent declines that are expected to persist for the next two to three years. Passarelli also notes that demographic shifts, reduced student and non‑permanent resident inflows, and lingering trade‑tension uncertainties are dampening rental demand, while older renters and job instability may sustain a modest base of demand. He cautions against expecting a dramatic rent spike once construction slows, emphasizing that long‑term fundamentals still point to a need for more rental supply.