Rental Market Favors Tenants with Lower Prices and Move-In Incentives
In recent months, the Canadian rental market has presented tenants with favorable conditions. A notable trend is the increased availability of incentives, such as free rent, move-in bonuses, and waived fees, as landlords seek to attract new renters.
Market Trends Favoring Renters
In Toronto and Vancouver, properties are offering attractive deals like up to three months of free rent or additional perks, which reflect a shift in the rental landscape. As vacancy rates rise and rental prices decline, many experts now believe it is a tenant’s market.
Declining Rental Prices
After a surge in rental costs post-pandemic, the market has shifted. According to data, average asking rents in Canada dropped by 3.1% in 2025 compared to the previous year. December marked the 15th consecutive month of year-over-year rent declines.
Regional Price Changes
- Vancouver: Average asking rents fell by 8%.
- Toronto: Rents decreased by 5%.
- Calgary: Experience similar 5% reductions.
- Montreal: 2% lower rents.
- Ottawa: A slight drop of 0.5%.
The current average asking rent in Canada stands at $2,060. This figure, while down by 2.3% year-over-year, is nearly 3% higher than three years ago and 14% above pre-pandemic levels.
Future Market Expectations
Experts forecast continued favorable conditions for renters through 2026. Analysts suggest that with more housing units coming onto the market, tenant choices will further expand. Approximately 180,000 rental units are currently under construction across Canada.
Shifts in Rental Demand
Despite a slowdown in immigration contributing to decreased demand, many renters are choosing to stay in their existing units. This trend has resulted in lower turnover rates and reduced rents. The vacancy rate for purpose-built rentals rose to 3.1% in the fall, surpassing the national average for the last decade.
Insights from Real Estate Experts
Real estate professionals like Marco Pedri and Mathieu Laberge advocate that the increased supply will allow tenant incomes to catch up with rising rent costs seen in previous years. They believe this balance will create a more equitable rental market.
As the rental landscape becomes increasingly favorable for tenants, individuals are encouraged to take advantage of competitive pricing and attractive incentives offered by landlords. This shift could lead to improved living situations as renters now have greater choice and bargaining power.
For ongoing updates and insights into the rental market, stay tuned to Filmogaz.com.
