Canada’s multifamily housing market is entering a more measured phase after several years of rapid post-pandemic expansion. According to Yardi’s Fall 2026 Canadian National Multifamily Report, apartment fundamentals remain stable despite mounting economic uncertainty, softer population growth and a cooling labour market.
Nationally, apartment occupancy held steady in the third quarter at 4.7 per cent vacancy, while average in-place rents increased by just $7 to $1,790. The annual rent growth rate of 1.7 per cent is the slowest since Yardi began tracking the market in 2020, signalling that the exceptional growth cycle seen in recent years has largely run its course.
The moderation comes against a backdrop of economic headwinds. Canada continues to contend with weak economic growth, renewed U.S. tariff pressures and shifting global trade relationships. Manufacturing-heavy provinces, particularly Ontario and Quebec, face heightened exposure, while Alberta remains vulnerable through its manufacturing and construction sectors. These pressures are contributing to cautious consumer spending, delayed household formation and reduced business investment.
At the same time, demographic trends have shifted significantly. While revised federal population-counting methods resulted in an upward adjustment of 301,000 residents, population growth remains well below the pace recorded in recent years. Slower immigration growth is easing some of the demand pressures that fuelled rent increases earlier in the decade, particularly in major urban centres such as Toronto.
Labour market conditions have also softened. Canada shed more than 100,000 jobs during August and September, with public-sector employment accounting for much of the decline. Manufacturing employment continues to weaken under the weight of tariff uncertainty, and national job gains over the past 12 months totalled only 95,000 positions.
Despite these challenges, rental demand remains resilient. Rather than moving into homeownership, many renters are staying put as borrowing costs remain elevated and home sales continue to decline. The average tenant stay increased to 37 months, while vacancy rates remained largely stable across most markets.
Regional performance, however, varied considerably. Halifax led major markets for rent growth, with in-place rents rising five per cent year-over-year to $1,752, followed by Winnipeg at 4.1 per cent and Montreal at 2.4 per cent. Halifax’s strong performance reflects continued demand and potential economic benefits tied to increased defence spending and naval activity.
Conversely, Calgary remained the country’s weakest-performing major market. In-place rents declined for a sixth consecutive quarter, falling 1.3 per cent year-over-year, although the pace of decline has moderated.
One of the report’s notable highlights is New Brunswick, which posted the strongest new-lease rent growth among provinces at 3.7 per cent. While representing only a small share of Canada’s population, the province continues to outperform many larger markets in both rent growth and occupancy.
Overall, the report paints a picture of a multifamily sector transitioning from rapid expansion to stability. Rent growth is slowing, but steady occupancy levels and longer tenant stays suggest that demand remains intact, even as Canada navigates a more uncertain economic environment.
