If you own rental property in Windsor, or you’re considering getting into the market, this is the kind of update worth paying attention to. Not because anything is “wrong,” but because the market has clearly shifted from where it was a couple of years ago.

The Canada Mortgage and Housing Corporation (CMHC) 2025 Rental Market Report lines up closely with what many landlords are already seeing firsthand. Windsor’s rental market hasn’t stalled, but it has cooled and become more selective. That changes how deals should be evaluated.

Vacancy in Windsor Is Higher Than Last Year

CMHC reports that the vacancy rate for purpose built rental apartments in the Windsor CMA is now 3.7 percent, up from 3.3 percent in 2024.

That’s not a dramatic jump, but it is meaningful. It tells us that new rental supply is not being absorbed as quickly as it was when conditions were tighter. Windsor’s vacancy rate also remains higher than both the Ontario and national averages, which reinforces an important point for investors. Local data matters. National headlines do not always tell the full story here.

For landlords, this means lease up timelines need to be more realistic. The days of assuming a unit will rent immediately at top dollar are largely behind us, at least for now.

Rents Are Up, But New Lease Increases Have Slowed

Average two bedroom rent in Windsor sits around $1,454, reflecting an increase of about 3.6 percent year over year. On paper, rents are still rising.

But there is an important distinction in the CMHC data that often gets overlooked.Turnover rents are mostly flat. When a unit becomes vacant and is re-leased, landlords are not seeing the same rent increases that were common during tighter market conditions.

In practical terms, long term tenants may still be paying below market rent, but vacant units are no longer guaranteed a big jump on the next lease. That has real implications for cash flow projections and investment assumptions.

What We Are Seeing Locally Matches the Data

The data lines up closely with what we are seeing across Windsor and Essex County.

Units are taking longer to rent. Applications require more scrutiny. Tenant urgency has softened. None of this is isolated to one neighbourhood or one type of property. It is a broader shift in demand.

This does not mean there is no demand. It simply means renters have more choice than they did before, and landlords need to adjust expectations accordingly.

Why Demand Has Softened

Several factors are contributing to this change in Windsor’s rental market.

There are fewer international students renting locally due to federal permit caps. There are also fewer temporary foreign workers, particularly in industries Windsor relies on, such as manufacturing, construction, agriculture, and hospitality.

Population growth has slowed, and economic uncertainty has played a role as well. Windsor recorded one of the highest unemployment rates among major Canadian metropolitan areas in late 2025, which impacts household formation and rental demand.

These are structural factors, not short term noise, and they help explain why the market feels different than it did a few years ago.

New Rental Supply Is Still Coming Online

At the same time demand has softened, new rental supply continues to be delivered.

Areas such as Amherstburg, Essex County, and East Windsor including Forest Glade have seen steady additions to rental inventory, much of it newer and higher end product. Many of these units are still leasing, but absorption is more sensitive to pricing, incentives, and quality than it used to be.

This puts pressure on overly optimistic projections and rewards investors who build in margin for longer lease ups and more competitive conditions.

What This Means for Windsor Landlords

This market environment is not negative. It is simply more balanced.

Balanced markets require better assumptions. They reward landlords who price realistically, screen carefully, and understand the micro markets within Windsor and Essex County. They also highlight the value of experience. Investors who have been through different cycles tend to adjust more quickly and avoid overextending based on outdated conditions.

Final Thoughts

The Windsor rental market remains active, but it is no longer operating on momentum alone. The CMHC 2025 Rental Market Report confirms what many local landlords are already experiencing.

For anyone investing in Windsor real estate, this is the type of information that should inform decisions. Markets change. The investors who do well over the long run are the ones who recognize those shifts early and adapt.

If you know a Windsor landlord or investor who would benefit from this perspective, share this article with them.