Canada’s rental market in 2026 looks markedly different from just a year ago. For most of the past few years, Canada’s multifamily story was straightforward: tight supply, strong demand and rent growth with a tailwind. The Yardi Canadian National Multifamily Report, recapping Q1 2026, reflects a different reality.
Vacancy has crossed 5% nationally for the first time since Yardi began tracking in 2020, new lease rents have turned negative across most of the country and population decline is reshaping demand in ways that weren’t part of the conversation a year ago. Below are the key takeaways, built from aggregated data representing 571,000+ units across Canada.
The picture: Canada’s rental market is under real pressure
Canada’s multifamily fundamentals are cooling due to declining population growth, reduced affordability and a weak labour market. These national averages from Q1 2026 show how much the picture has shifted:
- National average in-place rent: $1,761 (up $8 in Q1 2026, the slowest growth in four years)
- Year-over-year in-place rent growth: 2.7%, down 50 basis points from the prior quarter
- National vacancy rate: 5.1%, up for the ninth straight quarter
- New lease rent growth: -1.0% nationally, down from a peak of 13.1% in Q3 2023
- Annual turnover: 25.8%, up from 23.4% a year earlier
The market is functioning, but the underlying pressure is real and building.
In-place rent growth is at its lowest point in four years
Halifax continues to lead the country with 6.0% year-over-year in-place rent growth, followed by Montreal (3.7%) and Winnipeg (3.5%). But several major markets are lagging well behind: Vancouver sits at just 1.6%, Kitchener-Cambridge-Waterloo at 1.5% and Calgary is the only CMA in negative territory at -2.0%.
Since new lease rates have turned negative in most markets, what growth remains in in-place rents is coming largely from lease renewals. That dynamic won’t hold indefinitely.
New lease rents have turned negative nationally
This is the sharpest signal in the Q1 2026 report. Lease-over-lease rent growth on new leases hit -1.0% nationally in Q1 2026, negative in eight of the top 12 CMAs. Markets seeing the steepest drops include Kitchener-Cambridge-Waterloo (-5.0%), Vancouver (-3.6%), London (-3.0%) and Toronto (-2.6%). Halifax (1.6%), Hamilton (1.6%) and Ottawa-Gatineau (0.7%) were the only CMAs to post positive new lease growth.
For housing providers, negative new lease growth means pricing a vacant unit above the prior tenant’s rent is no longer realistic in most markets. Leasing strategy and speed of execution are what separate providers who maintain occupancy from those who don’t.
Vacancy has crossed 5% and is still climbing
The national vacancy rate rose to 5.1% in Q1 2026, up 60 basis points from the previous quarter and 110 basis points year-over-year. It’s the ninth consecutive quarterly increase. Vacancy is highest in Calgary (7.3%), Edmonton (6.2%), Kitchener-Cambridge-Waterloo (5.9%) and Saskatoon (5.9%). Nine of the top 12 CMAs saw vacancy rise by at least one percentage point over the past year.
Population decline is a key driver. Canada’s population shrank by more than 100,000 in 2025 as non-permanent residents left when temporary permits ended. The number of non-permanent residents fell by more than 470,000 from its peak in October 2024. That drop is showing up most clearly in markets like the Greater Toronto Area, where immigrant-heavy demand has softened. Bachelor units are bearing the brunt, sitting at 8.3% vacancy nationally.
Turnover and length of stay
Annual turnover reached 25.8% nationally in Q1 2026, up from 23.4% a year earlier. The average resident length of stay is 40 months nationally, but varies widely by market: Hamilton and Toronto residents average 53 months, while Saskatoon sees residents move on after just 24.
More turnover means more unit turns, more make-ready costs and more leasing pressure. In this environment, retaining residents through smooth renewals is one of the most effective ways to protect NOI.
Digital conversion is a growing edge
The report includes digital prospect conversion benchmarks by CMA, giving housing providers a way to measure their leasing funnel against market norms. Nationally, conversion sits at 8.3%, with London (12.1%), Ottawa-Gatineau (11.1%) and Saskatoon (13.1%) leading the country.
When vacancy is rising and new lease growth is negative, leads lost to slow follow-up or friction in the application process add up fast. Conversion benchmarks help identify where teams are leaving qualified prospects on the table.
How Yardi Breeze Premier helps you respond
Canada’s rental market rewards operators who execute consistently. When the market gets more competitive, execution becomes the advantage. Yardi Breeze Premier brings leasing, maintenance, accounting and resident communications into one platform, helping teams stay organized and respond faster without adding complexity.
In a market where vacancy is rising and new lease rents are negative in most CMAs, consistent day-to-day execution is worth more than it was a year ago.
Get CMA-level benchmarks on vacancy, rents, turnover, length of stay and digital prospect conversion by downloading the latest Canadian National Multifamily Report.
