Insights

In Atlantic Canada, multi-unit residential is dominating investor attention - and for good reason. Across the region, strong rental demand, ultra-tight vacancy rates, and constrained new supply are combining to produce stable cash flows, lower risk, and attractive exit potential.

Macro Backdrop & CMHC Signals

• The national purpose-built rental vacancy rate stood at just 1.5% in 2024, a new low. (source: Canadian Institute of Planners)

• In New Brunswick, the primary rental market recently hit its lowest vacancy rate in over 30 years (1.5%) - signaling intense demand pressure. (source: Global News)

• TD Economics expects that rent growth nationally will cool in 2025 to around 3-4%, but the tight starting point provides a cushion. (source: TD Economics)

These conditions make multi-unit properties an attractive choice for risk-adjusted returns, especially in secondary and tertiary markets where yield spreads over bonds and interest rates remain favorable.

Local Markets: Where Atlantic Canada’s Growth is Most Visible

Moncton
Moncton continues to lead in regional growth, with strong immigration, interprovincial in-migration, and jobs in sectors like logistics, health and education. While specific CMHC numbers for Moncton are harder to parse publicly, anecdotal reports point to vacancy rates as low as 1.2% in Greater Moncton (though to be taken with caution)
This extremely tight rental environment has made new apartment developments a high-value play. Owners with stabilized assets are commanding premium yields as buyers pile in.

Saint John
Saint John’s multi-family market is seeing a tightening vacancy trend. In 2023, the average vacancy across apartment stock was about 2.3% (among purpose-built and row units). (source: Brunswick Brokers)
Further, the city’s “Primary Rental Market” saw average rents increase nearly 9.8% year-over-year, with vacancy trending toward ~2.4%. (source: City of Saint John)

For investors, Saint John offers a compelling balance: yields slightly higher than major urban centres, and upside via stabilization and new supply.

Fredericton
Fredericton is also under pressure. While CMHC data specific to Fredericton is more constrained, comparative reports show average rents in 2024 across the region:

• Saint John: ~$1,133

• Fredericton: ~$1,353

• Moncton: ~$1,272

That suggests higher rental pricing power in Fredericton, likely tied to its stable government, education, and health sectors.
The broader trend in New Brunswick indicates that Fredericton is one of the regions with the “lowest vacancy rates” of late. Government of New Brunswick

What This Means for Owners, Investors & Developers

1. Lower risk, more resilience - Multi-unit returns are less volatile than office or retail, especially in markets with strong renter fundamentals.

2. Premium pricing for stability - Stabilized buildings with strong tenant metrics are commanding yield compression across NB & NS.

3. Value creation via repositioning & densification - In tight markets, converting underutilized property (e.g. surplus parking, or mixed-use conversions) yields outsized upside.

4. New supply is slow to respond - High construction costs and lending challenges create barriers, giving incumbents time to capture value.

5. Exit optionality is improving - As Atlantic markets mature, buyer appetite is broadening (local funds, private capital, pensions), improving liquidity for well-run assets.

The takeaway? In Atlantic Canada’s current cycle, multi-unit residential isn’t just a safe bet - it’s the centerpiece of value creation.