New lease rates turn negative nationally as population declines push vacancies above 5%
TORONTO, April 21, 2026 /PRNewswire/ -- Yardi has released the Canadian National Multifamily Report, recapping Q1 2026 and highlighting a market that is continuing to rebalance as vacancy rises, new lease rates turn negative and supply increases across major metros.
The national apartment vacancy rate rose to 5.1% in Q1 2026, up 110 basis points year-over-year and the ninth consecutive quarterly increase. In-place rent growth slowed to an average of 2.7% annually - the lowest rate in four years - with average in-place rents reaching $1,761. New lease rates fell to an average of -1.0% nationally in Q1 2026, with eight of the top 12 CMAs recording negative growth.
New supply continued to come online. In the 12 months ending November 2025, housing completions rose 22.3% to 171,000 units and apartment starts are up nearly 10% year-over-year, per the Canada Mortgage and Housing Corporation (CMHC) and Common Sense Economics. Ontario and the federal government also recently announced a new partnership that includes $8.8 billion in potential funding over 10 years to support new housing-enabling infrastructure for the province.
Operating costs also varied by province. Annual expenses averaged $8,053 per unit nationally in the year ending Q1 2026, with the highest averages in Ontario ($8,858) and the lowest in Saskatchewan ($6,733). As expenses are expected to continue rising, residential owners and managers can look to technology and AI to drive efficiencies across building operations and leasing.
"Vacancy is rising, new lease rates are negative in most markets and the renter population is shrinking," said Peter Altobelli, vice president and general manager, Yardi Canada Ltd. "These are real signals that the market is shifting quickly, and the window for the industry to adapt is now. Those who lean into data, technology and AI will be best positioned to make smarter decisions on tenant retention and investment opportunities."
The Canadian National Multifamily Report is based on data from 6,400 properties representing more than 571,000 private rental units across Canada, offering insights into rents, vacancy, supply trends, turnover and more.
To download the full report, visit: yardi.com/cndmultifamilyreport
About Yardi
Yardi develops industry-leading software for all types and sizes of real estate companies around the world. With more than 10,000 employees, Yardi is working with our clients to drive significant innovation in the real estate industry. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.
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