Canada’s Rental Market Stabilizes in 2026 — But Supply Risks Are Building

liv.rent’s 2026 Rental Market Trend Report finds that while vacancy rates are climbing and immigration slows, a pullback in housing starts may set the stage for another supply crunch as early as 2028

VANCOUVER, British Columbia, Feb. 24, 2026 (GLOBE NEWSWIRE) -- liv.rent has released its 2026 Canada Rental Market Trend Report, providing a comprehensive analysis of rent trends, migration shifts, construction activity, and forward-looking supply risks across major Canadian cities.

After years of intense competition, Canada’s rental market entered a stabilization phase in 2026. National vacancy rose to 3.1%, immigration declined 18% year-over-year, and landlords increasingly turned to incentives — reflecting easing pressure on renters, and a decline in renter frustration over high rents.

However, beneath the surface, a new imbalance may be forming.

While demand pressures have eased, housing start activity is weakening in key high-rise markets. In 2025, apartment starts fell 80% in Toronto and 7% in Vancouver. At the same time, project cancellations surged between 2022 and 2024, with cancelled units increasing fivefold in Toronto and tenfold in Vancouver. Given multi-year development timelines, today’s decline in starts risks creating a renewed supply shortfall within the next two to three years.

“2026 may feel more balanced for renters, but current construction and cancellation trends point to reduced supply later this decade,” said Matisse Yiu, Head of Marketing at liv.rent. “Even under moderated immigration targets, falling construction activity could set up renewed rental tightening by 2028–2030.”

Key Findings: 2026 Rental Market Highlights

Demand is cooling: Immigration declined 18% year-over-year, and Canada recorded a net loss of 290,392 non-permanent residents.
Renters are regaining leverage: National vacancy rose to 3.1%, while landlords increasingly turned to incentives to attract tenants.
Today’s construction slowdown could fuel tomorrow’s shortage: Housing starts weakened in Toronto and Vancouver—particularly in high-rise supply—while cancellations between 2022 and 2024 led to fivefold and tenfold increases in cancelled units in Toronto and Vancouver.
AI adoption remains early: Only one in six renters and landlords use AI tools. While 74% of landlords report time savings, renter experiences are mixed.

Why This Matters

The 2026 report identifies Canada’s rental market as being at a critical transition point: cooling today, but vulnerable to renewed supply pressure within the next two to three years if construction remains subdued.

For investors, operators, policymakers, and renters alike, understanding this shift is essential.

Download the Full 2026 Canada Rental Market Trend Report:
https://liv.rent/blog/rent-reports/2026-canada-rental-market-trend-report/

For media inquiries, interviews, or data requests, contact:
Matisse Yiu
Head of Marketing, liv.rent
media@liv.rent

Note: This report may not be disseminated in its entirety. We welcome you to share and post visual assets with proper credit. For additional media assets, please contact media@liv.rent.

Data Collection Methodology

The 2026 liv.rent Rental Market Trend Report uses data from liv.rent listings, as well as data manually collected from other popular rental listing platforms. Our methodology focuses exclusively on current asking rent prices. Unlike some government reports that include data for entire buildings (which may include long-term rent-controlled units), our analysis reflects real-time market conditions and active listing prices.

For influencing market factors, liv.rent references data from trusted sources such as Statistics Canada, Canada.ca, and CMHC, along with relevant reporting from established Canadian media outlets.

About liv.rent

Since launching in 2018, Vancouver-based liv.rent has grown into Canada’s safest rental platform, setting the standard for trust and security through multi-layered verification processes. With a Canada-wide reach, liv.rent combines advanced technology and industry-leading security measures to create a safer, smarter rental experience.

In addition to automation tools for renters and landlords, liv.rent actively combats rental scams by offering free educational resources and real-time market insights. Our monthly Rent Reports for Vancouver, Toronto, Montreal, Calgary, Edmonton, and Winnipeg provide in-depth data to help renters and landlords navigate the market with confidence.

For more information about liv.rent, please visit:
https://liv.rent/

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