Rental markets across North America are entering a more balanced phase after years of tight conditions. In Canada, new supply and slower demand have raised vacancy rates and eased asking rents, particularly among newer, higher-priced apartments. In the US, national vacancy improved in early 2026, although rent growth remained modest and localized as recently completed units continue to be absorbed in some markets.

These conditions will shape near-term multifamily performance. At the same time, a longer-term housing shift continues to unfold: people are reaching homeownership later and relying on rental housing through a larger portion of their adult lives.

Homeownership is moving later into adulthood

Teranet’s latest Ontario data illustrate a clear progression. The firm reported a median first-time buyer age of 36 in 2015 and 38 in 2020, while the median reached 40 in 2025. What was once more commonly an early-career milestone has moved deeper into mid-career.

The same milestone is shifting in the US, at approximately the same pace. Nationally, the median first-time buyer age increased from 30 in 2010 to a record 40 in 2025. First-time buyers also represented only 21% of home purchases, compared with a historical norm of approximately 40% before the global financial crisis.

In two different housing markets, the typical first-time buyer is now around 40. Homeownership remains an aspiration for many households, but the journey toward it is taking longer.

The path to ownership is extending for structural reasons

Affordability is a central part of the shift. Rising borrowing costs, tighter financing requirements, and the additional time prospective buyers need to build savings or equity all factor into the trend.

Limited housing supply compounds the challenge. CMHC estimates Canada would need to nearly double its pace of housing construction to between 417,000 and 469,000 units annually through 2036 to restore affordability to pre-pandemic levels. In the US, the National Association of Realtors similarly identifies limited inventory, eroding affordability, and difficulty saving for a down payment as barriers facing first-time buyers.

In the US, limited resale supply adds another layer to the affordability challenge. Many existing homeowners hold fixed-rate mortgages secured well below current rates, reducing their incentive to sell. The Federal Housing Finance Agency estimates that this “lock-in effect” prevented 1.72M home sales between the second quarter of 2022 and the second quarter of 2024, further limiting options for prospective buyers.

The timeline of other life milestones has also changed. Statistics Canada found that millennials aged 25 to 39 were about twice as likely as baby boomers at the same age to live with their parents. They were also considerably less likely to be married with children, the household type historically associated with the highest homeownership rate.

For many Canadians, delayed household and family formation has pushed the decision to buy a first home later in life, while affordability pressures and limited attainable inventory have lengthened the path to ownership once they enter the market.

Rental housing is becoming a longer-term home

Canadian renters are also remaining in their homes longer. From 1996 to 2021, the share of Canadian renters who had remained in the same dwelling for at least five years increased from 30% to 42%. Over the same period, the share who had occupied their current home for less than one year declined from 30% to 20%.

Longer tenancy can reflect a range of circumstances. Some residents may value the stability of their home and community. Others may face a significant increase in housing costs if they move or may be waiting longer to enter the ownership market. Together, these patterns show rental housing is serving as a long-term home for a growing share of households.

That shift also broadens the range of renters and life stages multifamily housing must support. A renter approaching 40 may have different expectations than someone renting briefly after school. Location, space, amenities, service and a sense of community can become more important as residents build established lives in rental housing.

A longer-term role for multifamily

The longer-term housing trend extends beyond the current supply cycle. On both sides of the border, homeownership is occurring later. In Canada, more renters are also remaining in the same homes for extended periods.

As the path to ownership lengthens, rental housing supports households through more of their adult lives. That expanding rental lifecycle may support the continued importance of multifamily housing within the North American housing system, even as market conditions evolve.

This material is for informational purposes only and should not be construed as investment, legal, tax, or financial advice. The views expressed are based on publicly available information believed to be reliable at the time of publication and are subject to change. Future housing or market trends are not guaranteed.