OTTAWA – Canada’s housing agency says rental prices have fallen amid an influx of new completions and slower population growth, but demand in major cities is expected to grow in part due to improving affordability.
Canada Mortgage and Housing Corp.‘s mid-year rental market report says increased supply competition from new builds is driving asking rents lower, particularly in markets such as Toronto, Vancouver, Calgary and Ottawa.
A surge in newly completed condominium apartments in Toronto and Vancouver, many of which couldn’t be absorbed in the ownership market and are now instead being rented out, is also contributing to that dynamic.
The report describes a short-term imbalance between supply and demand in new, higher-priced units, leading to rising vacancies that can often take months to fill.
In addition to lowering rents, the report says landlords are increasingly turning to incentives to attract tenants, often advertising multiple months of waived rental fees, free or discounted parking, gift cards, move-in credits or cash bonuses.
Still, landlords are continuing to increase rents paid on occupied units, as well as raising rents once a unit becomes available in markets with persistently low turnover, which is contributing to an increase in the average rents paid by all tenants.
This report by The Canadian Press was first published June 9, 2026.
