As vacancy rates rise and rents ease across several major markets, move‑in incentives are becoming increasingly common, reshaping how renters search for homes and how property managers compete for tenants. New analysis from Rentals.ca and Urbanation shows that approximately one in five rental listings in major markets such as Toronto and Vancouver now includes some form of incentive, ranging from free rent to cash bonuses.
This surge in move-in incentives reflects a market adjusting to increased supply and shifting demand. According to Shaun Hildebrand, President of Urbanation, perks upon move-in have become far more prevalent as vacancy rates climb and competition intensifies.
“For renters, these promotions can represent meaningful savings and improved affordability, while for property managers, incentives are increasingly being used as a competitive tool to attract tenants and complete lease-ups in a softer market environment,” he said.
Common offerings now include a month of free rent, reduced parking fees, internet packages, gift cards, and cash bonuses among others. The trend is especially pronounced in the Greater Toronto and Hamilton Area (GTHA), where a surge in new supply—combined with heightened competition from condo rentals—has created more challenging lease‑up conditions. In Q1 2026, 66 per cent of newly completed purpose‑built rental projects offered move-in incentives, up sharply from 32 per cent two years earlier. The most common incentive was two months of free rent, offered by 47 per cent of projects, compared with 32 per cent in Q1 2025.
On average, incentives reduced effective rents by 13 per cent, equivalent to $379 per month, up from $292 in 2025 and $163 in 2024. These shifts illustrate how quickly incentives have evolved from occasional perks to standard practice in many new developments.
A similar pattern is emerging in Ottawa, where rising vacancies are driving deeper discounts. The vacancy rate for stabilized purpose‑built rentals reached 3.2 per cent in Q1 2026, double the level from two years earlier. While average asking rents held steady at $3.28 per square foot, incentive‑adjusted rents fell to $2.91 per square foot, representing an 11.4 per cent discount. The widening gap between face rents and effective rents underscores how incentives are quietly reshaping affordability in markets where supply has caught up with demand.
For renters, the rise of incentives represents a rare moment of improved leverage in a market that has long favoured landlords. For property managers, these offerings have become an essential competitive tool—particularly in regions experiencing substantial new supply. As Canada’s rental market continues to rebalance, incentives are poised to remain a defining feature of the leasing landscape.
To explore the full analysis, visit Rentals.ca.
