January delivered a sharp rebound in renter activity after December pushed demand to its lowest point in nearly two years. This jump was expected. January typically marks a return to the market as renters resume searches after the holidays. What stood out this year was the size of the rebound, which was stronger than what seasonal patterns alone would suggest. Even so, this surge reflects a short-term reset from unusually weak December conditions, not a broader shift in demand fundamentals. Momentum is likely to cool again in February before the spring leasing season begins.
Nationally, active prospect counts rose 35.7 percent month over month, the largest single-month increase seen in several years. Active properties increased more modestly, up 2.0 percent, which pushed prospects per property higher by 33.1 percent. This temporarily improved renter availability and eased some of the pressure created by the slow winter leasing environment. Year-over-year comparisons remain weaker. Active prospects declined 2.4 percent compared to last January, while available properties edged down 0.5 percent, leaving prospects per property down 1.9 percent annually. The market remains less competitive than last year, despite January’s bounce.
January’s recovery needs to be viewed in context. December demand was unusually soft, and much of January’s growth reflects renters re-entering the market rather than new demand being created. Compared to the sharper declines seen throughout 2024 and early 2025, year-over-year conditions are more stable, but they are not meaningfully improving. Renter activity remains shaped by affordability pressure, limited mobility, slower in-migration, and cautious household decision-making.
This sets a restrained starting point for 2026. Demand is stabilizing at lower levels rather than rebuilding quickly. Recovery is likely to be uneven across markets and slower in higher-cost urban centres where renter sensitivity remains high.
National Stats (Month-over-Month):
National Stats (Year-over-Year):
By Market Segment (Active Prospects, MoM):
February is likely to bring a pullback from January’s surge as the initial post-holiday return fades. Demand should remain higher than December lows but is unlikely to sustain January’s pace. A more durable recovery will depend on spring seasonality rather than improved renter confidence.
For operators, the near-term focus remains on value clarity and stability. Renters are active, but selective. Properties that align pricing, incentives, and messaging with affordability expectations will be best positioned as demand rebuilds gradually through Q1.
Demand scores increased by 33.1% in January across our top markets in demand. Active prospects increased by 35.7%, while active properties grew by 2.0%, resulting in average prospects per property to increase by 33.1% in January. January as a whole saw improved market conditions for active properties, as a result of the increase in active renters and reduced relative competition amongst active properties. Amongst the top 10 markets in demand, prospect counts increased by 38.2%, and available properties by 4.2%. All market segments saw an uplift in renter activity in January, with Primary markets experiencing the largest overall monthly increase of all market segments.
Month-over-month (M/M): Within our top 40 markets, demand scores were up (33.1%) in January 2026 compared with December 2025. January marks a point of recovery after a winter marred by slowed rental demand.
Annual demand comparisons which for the past 2 years have been marked by substantial and growing declines in rental demand, show a picture of marginal recovery and the beginnings of stability. Across our top markets in demand, active prospects declined by (-2.4%), active properties by (-0.5%), and active prospects per property down (-1.9%). Amongst the top 10 markets in demand, we see recovery, with active prospects up 5.3% annually, while properties are up 6.2% which actually results in fewer active prospects per property down (-0.8%) however as the lowest of all market segments, and broader national averages this is a positive indicator for more recovery to come.
Year-over-year (Y/Y): Within our top 40 markets, demand scores are up 40.1% in January 2026 compared with January 2025. While we are not likely to see a full recovery, we will continue to see greater stabilization of market fundamentals in the coming year.
To provide a more detailed analysis of the rental demand in specific markets across Canada, we have segmented our market data into 3 key market segments.
Examining these market segments individually offers a deeper understanding of demand patterns within larger population centres, and allows us to identify trends across markets.
*Overall demand scores are up 34.8% month-over-month, unique prospects are up 39.5%, and properties are up 3.5%.
Primary markets saw the largest increase in active prospects of all market segments in January, up 39.5% month-over-month, with properties up 3.5%, and average prospects per property up 34.8% monthly. All cities within our primary market segment experienced an uplift in the total number of active prospects, with Montreal leading the charge up 81.5%, and Ottawa coming in at second place up 61.7%. The slowest growing markets in January were Mississauga and Scarborough up 17.9%, and 19.9% respectively.
*Year-over-year demand scores are up 31.8%, prospects are down -1.7%, and properties are up 6.5%.
Year-over-year comparisons of annual demand scores do not adequately reflect current market conditions, or long-term trends in rental market demand. These comparisons only offer a comparison of relative demand levels which results in artificially inflated demand scores for the current market. Year-over-year comparisons of active prospects and property availability suggest that while market demand has continued to decline on an annual basis, relative market conditions are gradually softening suggesting that much of the decline is already baked into current demand figures and that the coming year will see relatively more stable demand trends. While a majority of markets saw declining prospect counts on an annual basis, Vancouver, Mississauga, and Calgary all saw growth in year-over-year prospect counts.
*Secondary markets demand scores are up 25.3% month-over-month, unique prospects are up 29.0%, and properties are up 3.0%.
While secondary markets experienced a substantial increase in overall rental demand in January, this recovery was also the smallest of all market segments, with both tertiary and primary markets outpacing secondary market activity. Similarly to primary markets, all secondary markets experienced a lift in active prospect counts in January, with average prospect counts increasing by 29.0%; and many major markets experiencing above average recovery. On the other hand, select markets including Brampton 3.2%, Oshawa 8.2%, and Kitchener 8.9% all posted well below average recoveries suggesting that these suburban markets may see a slower relative recovery than the broader market segment.
*Overall, year-over-year demand scores are up 39.8% year-over-year, with prospects down by -10.0%, and properties are down by -8.1%.
Similarly to primary markets Year-over-year comparisons of demand scores are not an accurate reflection of market shifts. Secondary markets posted the largest annual declines in active prospect counts of all market segments, due to several markets experiencing substantially larger than average annual declines including Windsor, Quebec City, Laval, Kitchener, and Oshawa. With the remaining markets all posting below average rates of annualized prospect declines. Overall, market conditions remained tighter than in previous years, with fewer prospects per available property. This imbalance underscores that, although demand has shown signs of recovery in select secondary markets, local factors also impact recovery resulting in markets moving in different directions.
*Demand scores in tertiary markets increased by 30.4% month-over-month, unique prospects are up 31.8%, and available properties are up 1.1%.
Tertiary markets experienced strong rebounding in January with prospects up across all the markets in our rankings. Dartmouth was the slowest growing market in our Tertiary market rankings with prospect counts up only 1.7%, negligible when compared against Halifax which saw prospects increase by 38.2% in January.
All other Tertiary markets saw substantial rebounding in January leading to a positive outlook into 2026.
*Overall, year-over-year demand scores are up by 31.8%, unique prospects are down -5.7%, and available properties are up 2.1%.
Tertiary markets once again fall in the middle of the pack in terms of annual shifts in rental demand, with Secondary markets reporting larger declines, and Primary markets reporting marginal declines year-over-year. While the average across this market segment is of declining prospect counts, approximately half of the markets within our tertiary market rankings posted growth in their prospect counts including Kelowna, Guelph, Kingston, Richmond, and Coquitlam with an average annual rebound of 25.7%.
January delivered the expected seasonal rebound after December pushed rental demand to historic lows. National prospect counts jumped 36.7 percent month over month, marking the strongest single-month increase in five years. This provided short-term relief for properties that struggled through a slow winter leasing period. The rebound confirms the role of seasonality in early-year demand and temporarily improves renter availability, easing market pressure after a difficult end to the year.
That said, January’s surge does not signal a broader recovery. Year-over-year comparisons continue to show reduced relative demand, with fewer active prospects and growing supply. After the initial post-holiday return, February is expected to soften again in line with typical seasonal patterns, before more durable demand begins to rebuild in the spring and summer.
There are early signs that longer-term declines are beginning to level out. Compared to last year, the pace of annual demand erosion has slowed, suggesting that much of the structural pullback is already reflected in current conditions. A full recovery remains unlikely in the near term, but forward-looking trends are expected to be more moderate than those seen over the past two years. Affordability pressures, limited renter mobility, slower in-migration, and broader economic uncertainty will continue to cap how quickly demand can recover and will keep conditions uneven across markets.
What’s Next for Canadian Rental Demand?
Looking ahead, rental activity is likely to remain driven by smaller, more cautious renter groups. Affordability sensitivity will stay high, and renters will be more selective about where and when they move. Properties that clearly communicate value, stability, and flexibility will be better positioned to convert demand as activity gradually improves.
For property managers and leasing teams, the early months of the year remain a key adjustment period. As the market transitions out of winter volatility and toward a slower, more measured recovery later in 2026, clear positioning and realistic pricing will play a central role in maintaining leasing momentum.
To present this data, Rentsync has determined three key calculations for each area of the report, They are as follows:
Demand Score: Our demand score is rated out of 10 (with 10 being the highest score a city can receive), and is calculated based on unique leads per property, per city, and compared against benchmark data.
For Example: Coquitlam, BC received a demand score of 8.5 this month, versus 5.4 last month. Burnaby experienced a 3.1-point increase in its demand score.
Demand Percentage (% +/-): This is determined according to the year-over-year (YOY) or month-over-month (MOM) increase or decrease in unique leads per property.
For Example: The month-over-month demand scores in Coquitlam, BC, experienced a 59% increase in January 2026 versus December 2025. The year-over-year demand score in Coquitlam was up 69% from January 2025.
Position: The position is determined by unique leads per property, with cities that have at least *20 properties or more. The position will vary depending on demand.
For Example: This month, Coquitlam, BC, gained 1 spots to take the top spot in our Top Canadian Cities in Demand Rankings.
*This report provides month-over-month rental listing data for January 2026 versus December 2025 and a year-over-year comparison from January 2026 versus January 2025 . It also outlines the month-over-month and year-over-year trends in primary, secondary, and tertiary markets.