On average, Canada’s private rental housing stock delivered roughly $1,093 of monthly operating income per unit across a universe of 533,000 units in 12 major markets during the second quarter of 2026. Even so, Yardi’s newly released stats for the spring period show slowing rent growth as the average rate for new leases dropped 0.6 per cent since winter.
Looking at the full market of new leases and existing tenancies, the average national rent nudged up to $1,774 — a $6 increase that represented the most modest quarterly growth increment of the past five years. Annual expenses for the 12-month period ending June 30 averaged $8,165 per unit, breaking down to about $680.42 per month. Meanwhile, the national vacancy rate eased down 40 basis points (bps) to 4.7 per cent, reversing a consistent upward trend since Q1 2024.
“In-place growth mostly comes from renewals, as new lease rates have turned negative,” Yardi analysts observe. “The negative new lease rates are concentrated in major markets in Ontario, British Columbia and Alberta. Properties in segments with weaker demand and higher vacancy rates increasingly are offering incentives to attract tenants and maintain occupancy.”
Halifax stands out as Canada’s most robust market in Q2, boasting the steepest year-over-year average rent growth, at 5.7 per cent, and lowest average vacancy rate, at 2.4 per cent. It also realized the highest average rent increase for new leases — 2.5 per cent — at a time when average rents for new leases dropped in seven of the 12 surveyed markets. That said, average rents for one-bedroom ($1,335) and two-bedroom ($1,834) units lag national averages of $1,602 and $1,918 respectively.
Winnipeg (2.8 per cent), Ottawa-Gatineau (4 per cent), Vancouver (4.2 per cent) and London, ON (4.4 per cent) also registered average vacancy rates on the low side of the 4.7 per cent national benchmark. Seven markets saw their average vacancy rate pegged from 10 bps to 210 bps above the national average.
Calgary finished out Q2 with Canada’s highest average vacancy rate, at 6.8 per cent, and was the only market to experience a year-over-year drop in average rent. The latter dipped 1.9 per cent from Q2 2025, while average rent for new leases suffered a steeper 2.2 per cent slide. Nevertheless, average rents for one-bedroom ($1,608) and two-bedroom ($1,958) units surpassed the national averages.
Yardi analysts note the irony of weaker rent growth in Calgary and Edmonton, given that Alberta landlords are not subject to rent control, but attribute it to an influx of new units in both markets. “Calgary has delivered 23,000 apartments since the start of 2024, more than it produced in the previous decade. Edmonton has also delivered more than 20,000 units since 2024,” they advise.
Vancouver and Toronto posted the highest average rents for one-bedroom units — at $1,914 and $1,788 respectively — while five markets, led by Vancouver ($2,433), registered average two-bedroom rents in excess of the national average.
Montreal, perhaps surprisingly, commanded a higher average two-bedroom rent ($2,166) than Toronto ($2,066). Concurrently, Montreal landlords saw a slight 0.3 per cent average gain on new two-bedroom leases versus the average 1.9 per cent loss their peers in Toronto experienced.
Healthy occupancy of bachelor apartment stock positions Halifax and Winnipeg as clear anomalies in relation to the average national vacancy rate of 7.4 per. Winnipeg posted the lowest vacancy rate in the market segment, at just 1.6 per cent, along with the lowest average rent at $1,057. It was also alone in realizing an average rent gain of 2.7 per cent on new leases. Halifax recorded a 2.8 per cent average vacancy rate in the bachelor sector along with average rent of $1,335.
Meanwhile, average vacancy rates for bachelor unit pushed up to 9.4 per cent in Toronto with an accompanying 3.6 per cent decline in average rents on new leases. Calgary recorded a 7.9 per cent vacancy rate and 2.6 per cent decrease in rents on new leases, while Vancouver posted a 7.3 per cent average vacancy rate and a 2.5 drop in rents on new leases.
“Bachelor units are more difficult to fill because many are too small for households with two workers and/or children,” Yardi analysts reason.
Yet, there’s also a hint of brewing demand. “Strong hiring in the 15-24 age cohort led the youth unemployment rate to drop to 12.7 per cent, down almost 2 percentage points since last fall. Improved prospects for young workers could provide impetus to form new rental households,” they hypothesize.
