Yardi's Q3 2026 report shows the national vacancy rate fell as rent growth hits a five-year low
Canada's multifamily market reached a turning point in the second quarter of 2026. The national apartment vacancy rate fell for the first time since late 2023 even as rent growth cooled to its slowest pace in five years, according to the Yardi Canadian National Multifamily Report for Q3 2026.
The report tracked data from 6,100 properties representing more than 533,000 private rental units across Canada.
The national vacancy rate dropped 40 basis points to 4.7% in Q2 2026, ending nine consecutive quarters of increases.
Even with the decline, vacancies remain 60 basis points above the 4.1% rate recorded a year earlier, a reflection of the substantial wave of purpose-built rental supply that came online through 2025 and into 2026.
Halifax, at 2.4%, and Winnipeg, at 2.8%, posted the tightest conditions among major Census Metropolitan Areas (CMAs).
Calgary, at 6.8%, and Edmonton, at 5.8%, remained the weakest, though both eased from Q1 2026 levels.
The vacancy shift is significant for mortgage brokers advising clients with income-property exposure, particularly in Alberta, where the Yardi data shows new lease rates in Calgary fell 2.2% in Q2 2026 and in-place rents declined 1.9% year-over-year — the only major CMA where in-place rents moved lower than a year ago.
Rent growth hits multi-year lows
Average national in-place rent rose just $6 in Q2 2026 to $1,774, the smallest quarterly gain since 2021, according to Yardi.
The annual in-place growth rate of 2.2% is less than half the rate recorded in the same quarter a year earlier and the lowest since Q4 2021.
Nationally, new lease rates turned negative for the second straight quarter, landing at -0.6% in Q2, an improvement from -1.0% the prior quarter, but still a signal of ongoing pressure in major markets.
Canada Mortgage and Housing Corporation (CMHC) deputy chief economist Tania Bourassa-Ochoa noted in a June mid-year rental market update that recent supply growth is improving choice in some segments, particularly newer, more expensive units.
However, that persistently tight conditions in lower segments highlight that affordability challenges remain and will take time to address.
Renewal rates, which continue to be the primary driver of in-place rent growth, averaged 2.4% nationally in Q2 2026, the lowest level since Q4 2022.
That softness extends to tenant behaviour: residents are staying put, with the national average length of stay now at 38 months, up slightly from 37 months in Q2 2025.
Canada multifamily market snapshot
Q2 2026 — Source: Yardi Canadian National Multifamily Report Q3 2026
| City | Vacancy rate | YoY in-place rent | New lease growth | Avg in-place rent | Condition |
|---|---|---|---|---|---|
| Halifax | +5.7% | +2.5% | — | Tight | |
| Winnipeg | +3.6% | +1.3% | — | Tight | |
| Ottawa–Gatineau | +2.6% | +1.5% | — | Moderate | |
| Vancouver | +0.9% | −2.0% | $1,914 (1-bed) | Moderate | |
| London | +2.0% | −1.4% | — | Moderate | |
| Toronto | +2.0% | −2.8% | $1,788 (1-bed) | Moderate | |
| National | +2.2% | −0.6% | $1,774 | National avg | |
| Hamilton | +2.7% | +1.3% | — | Moderate | |
| Saskatoon | +1.4% | −1.3% | — | Moderate | |
| KCW | +1.1% | −4.5% | — | Moderate | |
| Montreal | +3.4% | +0.5% | — | Moderate | |
| Edmonton | +1.5% | −1.2% | $1,359 (1-bed) | Soft | |
| Calgary | −1.9% | −2.2% | $1,628 (1-bed) | Soft |
Source: Yardi Canadian National Multifamily Report, Q3 2026. Data covers 6,100 properties and 533,000+ rental units. KCW = Kitchener–Cambridge–Waterloo.
Supply pipeline set to slow
Apartment starts in 2025 accounted for more than half of all housing starts in Canada, though the pipeline now appears set to slow, with residential building permits declining in several markets.
In Halifax, one of the country's tightest rental markets, building permits fell 9.7% in the first five months of 2026 compared with a year earlier, according to Yardi's analysis of Statistics Canada data.
Calgary has delivered approximately 23,000 apartments since the start of 2024, more than it produced in the previous decade, according to Yardi, a supply surge that helps explain its elevated vacancy and negative rent growth.
For brokers working with investor clients, the picture is nuanced. RBC economist Rachel Battaglia has noted that Canada's rental market is experiencing a period of adjustment after years of unsustainable rent growth, and that while current headwinds will continue pulling vacancies higher in most markets near-term, the correction is not expected to extend far into the future.
The federal government and British Columbia have each committed up to $1.6 billion over 10 years to spur multi-unit housing development.
The government has announced plans to purchase up to 2,200 vacant condo units for conversion to affordable housing, though Yardi noted that the details of provincial tax and fee rebates leave the immediate impact uncertain.
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