Windsor's rental market softened in 2025 according to a new report from the Canada Mortgage and Housing Corporation (CMHC).
In its year end report, CMHC says Windsor's vacancy rate was at 3.7 per cent, higher than the Ontario and national averages.
Anthony Passarelli, CMHC's lead economist for Southern Ontario, said declining international migration and tariff-related challenges kept market conditions soft.
"We saw fewer international students, fewer temporary workers in the region, and those two groups are strong candidates to rent. So with less of them living in the region we saw the vacant rate tick up, and also you had the economic uncertainty with Windsor being one of the most tariff exposed regions in the country," he said.
CMHC reports the average rent for a two-bedroom apartment was up 3.6 per cent in 2025 to $1,454.
They also said rental stock in Windsor grew by 3.6 per cent this year.
Amherstburg and north Essex County continued to see the strongest supply growth, similar to 2024, in amenity-rich beachside areas that may attract downsizing senior households.
Passarelli said Forest Glade had the largest number of new units with more in the pipeline.
"That will help the trickle down towards better affordability because it improves the flow of renters. People don't stay as long in one unit. They're able to move within the rental market and free up their unit for somebody else," said Passarelli.
Passarelli said looking ahead to 2026, vacancy rates could potentially rise as factors including lack of international students and tariff uncertainty continue.
"There is still quite a bit under construction, so there will be new units added, and we're not sure the demand will be there to meet it in the short term at least," he said.
Windsor had the highest unemployment rate in the country in September at 10.4 per cent, since improved to 8.1 per cent, however CMHC said according to their market intelligence, many laid-off workers moved to provinces like Alberta for employment opportunities.