Canada’s multi-family market is showing clear signs of cooling as population declines and economic uncertainty push vacancies higher and rent growth lower, says Yardi.

The firm’s latest national report for the second quarter of 2026 finds that in-place rents rose modestly in the first quarter, increasing by $8 to an average of $1,761, while annual growth slowed to 2.7%, the lowest level in four years. Growth is now largely driven by lease renewals, as new lease rates have turned negative in most markets.

Nationally, lease-over-lease rents fell 1% year-over-year in Q1 2026, continuing a steady decline from a peak of 13.1% in 2023. The drop reflects growing affordability pressures and economic uncertainty, with consumers becoming increasingly budget conscious, said Yardi.

At the same time, vacancy rates have climbed for nine consecutive quarters, reaching 5.1%, up 110 basis points year-over-year. The increase is tied to declining numbers of temporary workers and international students, as well as broader population contraction, which has reduced rental demand across the country.

Rising vacancies are also driving higher tenant turnover, which reached 25.8% nationally, while the average tenant stay lengthened slightly to 40 months.

Among Canada’s largest cities, performance varied widely. Halifax, Montreal and Winnipeg recorded the strongest in-place rent growth at 6%, 3.7% and 3.5%, respectively. In contrast, Vancouver (1.6%) and Kitchener–Cambridge–Waterloo (1.5%) were among the weakest, while Calgary posted negative growth of -2%.

New lease rents declined in most major markets, with the steepest drops in Kitchener–Cambridge–Waterloo (-5.0%), Vancouver (-3.6%), London (-3.0%), Toronto (-2.6%) and Calgary (-2.4%). Only a few markets, including Halifax and Hamilton (both 1.6%) and Ottawa–Gatineau (0.7%), recorded gains, while Winnipeg remained flat.

Vacancy rates are highest in Calgary (7.3%), Edmonton (6.2%) and both Kitchener–Cambridge–Waterloo and Saskatoon (5.9%). Vancouver saw one of the sharpest increases, with vacancies rising 160 bps year-over-year, while Edmonton and Saskatoon also posted significant gains.

Despite the broader cooling trend, some tighter markets remain. Halifax continues to post one of the lowest vacancy rates at 2.8%, followed by Winnipeg at 3.5%, supported in part by domestic migration patterns.

Overall, the report indicates that slowing population growth and shifting migration patterns are easing pressure on rents but contributing to a softer rental market, with rising supply and weakening demand reshaping fundamentals across Canada’s largest urban centres.