Gourav Suri

Increased supply and slower demand have eased asking rents, bringing Canada’s major rental markets toward more balanced conditions. However, trends vary by segment, including building age and rent level. Conditions are expected to continue easing as new units take longer to be absorbed and competition from rental condominium apartments increases. This is creating short-term imbalances in newer, higher-priced segments.

Highlights

• Asking rents declined due to increased supply and slower population growth, while average rents for occupied units continued to rise.
• Vacancy increases are mostly concentrated in new supply, where landlord-provided incentives support absorption.
• Rental markets are easing as new completions take longer to absorb, while competition from rental condominium apartments in certain markets is creating a short-term imbalance between supply and demand in new, higher-priced segments.
• Conditions remain very tight in the lowest rent quartiles in most markets, implying little improvement in affordability.
• Tenant mobility is highest in more expensive units and more limited in lower-rent segments, despite recent gains in turnover.
• Rental demand is expected to grow, even with much lower population growth.

https://www.cmhc-schl.gc.ca/observer/2026/2026-mid-year-rental-market-update