Rentsync National Rental Demand Report: March 2026

Demand Trends for the Canadian Market

February followed a more typical seasonal pattern after January’s strong rebound in renter activity. National prospect counts declined -3.0% month over month, closely matching the average January-to-February decline of roughly -3.1% seen over the past six years. In other words, February’s slowdown was expected and reflects a return to typical seasonal conditions rather than a renewed drop in renter demand.

Year-over-year demand was essentially unchanged. Active prospects were down just -0.1% compared to February 2025. This suggests that much of the demand correction seen over the past two years has already taken place. Instead of continued sharp declines, the market is beginning to settle into a more stable level of renter activity.

Signs of Stabilization Across Key Markets

In Canada’s most active rental markets, prospect counts declined slightly faster than the national average, falling -3.9% month over month. At the same time, the number of active properties also declined, down -1.9%. Because both renters and available units decreased, the overall level of competition softened only slightly, with prospects per property declining -2.1%.

The top 10 markets by renter demand saw a larger drop in prospect activity, declining -7.8% month over month. However, these markets also experienced a notable decline in available listings, which fell -5.9%. As a result, prospects per property declined by a smaller -2.0%, indicating that competitive pressure eased only modestly despite fewer renters searching.

Looking at annual comparisons, demand trends now appear more stable across the market. Active prospect counts increased slightly year over year across all market segments tracked. While this does not signal a full recovery from the demand declines experienced since 2023, it does suggest that the market is beginning to stabilize ahead of the spring lift in rental activity.

Breaking Down the Numbers:

National Stats (Month-over-Month):

• Active Prospects: -3.0%
• Active Properties: -1.9%
• Prospects per Property: -2.1%
  
  

National Stats (Year-over-Year):

• Active Prospects: -0.1%
• Active Properties: -0.6%
• Prospects per Property: +1.9%
  
  

By Market Segment (Active Prospects, MoM):

• Primary Markets: -2.0%
• Secondary Markets: -10.1%
• Tertiary Markets: -6.0%
  
  
  

What to Expect Next

February’s decline suggests the market is returning to typical seasonal patterns after January’s temporary surge in renter activity. With demand now stabilizing year over year, the next major shift will likely come from the spring lift in rental activity.

Recovery is expected to be gradual and uneven across markets. Properties and markets that prioritize resident stability and value will be best positioned as renter confidence slowly returns.

Top Canadian Cities in Demand

Notable Changes in Demand Over the Past Month

Demand scores decreased -2.1% in February across our top markets in demand. Active prospects decreased by (-3.9%), available properties decreased by (-1.9%), resulting in average prospects per property declining by (-2.1%) substantially lower than the month over month decline posted February 2025. The top 10 markets in demand showed more varied movement with active prospects declining by (-7.8%), active properties declining by (-5.9%), and average prospects per property declining by (-2.0%). All market segments saw a decline in monthly prospects albeit lower than the declines posted in 2025.
 

Month-Over-Month (M/M)

• Primary: Demand scores are down -1.1%
• Secondary: Demand scores are down -1.9%
• Tertiary: Demand scores are down -4.1%

Month-over-month (M/M): Within our top 40 markets, demand scores were down (-2.1%) in February 2026 compared with January 2026. February typically represents the final quiet month of rental demand before the Spring lift.

Notable Changes in Demand Over the Past Year

Annual demand comparisons for the second month this year show an ongoing recovery and stabilization of demand metrics. Across our top markets in demand we see a 1.3% increase in active prospects year-over-year, properties during this time have declined (-0.6%) , and resulting in average prospects per property improving by 1.9% suggesting marginally stronger rental demand at the property level. While annual comparisons do not directly indicate where future demand will go, it nonetheless suggests that market conditions are not in direct decline and show growing stability as we enter the spring months.

Year-Over-Year (Y/Y)

• Primary: Demand scores are up 37.8%
• Secondary: Demand scores are up 46.3%
• Tertiary: Demand scores are up 50.3%
  
  

Year-over-year (Y/Y):  Within our top 40 markets, demand scores are up 45.5% in February 2026 compared with February 2025. Large swings in annual demand scores are not directly indicative of a resurgence in market demand, however we are seeing a greater stabilization of market fundamentals.

An Analysis of Key Canadian Markets

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.

• Primary (Populations Over 600K)
• Secondary (Populations Between 235-600K)
• Tertiary (Populations Between 100-235)

Examining these market segments individually offers a deeper understanding of demand patterns within larger population centres, and allows us to identify trends across markets. 

Primary Markets (Populations >600k)

Primary Market Month-Over-Month: Feb 2026 vs. Jan 2026

Notable Changes in Primary Markets Over The Past Month

*Overall demand scores are down -1.1% month-over-month, unique prospects are down -2.0%, and properties are down -0.9%.

Primary markets experienced the lowest relative monthly decline of all market segments in February, with active prospects down only (-2.0%), which falls directly in line with the national average and well below that of secondary and tertiary markets. This below-average decline in active prospects was due in part to Calgary, Edmonton, and Winnipeg all posting monthly growth in renter activity, with the remaining markets posting monthly declines around the average, with the one exception of North York, which posted a substantial monthly decline in active prospects.

Primary Market Drill Down (Y/Y): Feb 2026 vs. Feb 2025

Notable Changes in Primary Market Demand Over The Past Year

*Year-over-year demand scores are up 37.8%, prospects are up 2.2%, and properties are up 5.9%.

Year-over-year comparisons of annual demand scores do not adequately reflect current market conditions, nor long-term trends in rental demand. These comparisons only offer a comparison of relative demand levels. The 37.8% increase in demand scores is more so an indication of a stabilization of rental demand when reviewed alongside the growing number of active prospects on market. This growth in prospect counts is not reflective of an overall recovery but a stabilization in demand trends. Of our top primary markets in demand nearly all markets posted annual growth; with Scarborough, Winnipeg, and Montreal being the only exceptions with annual declines in active prospects. Primary markets are expected to continue their outperformance relative to other market segments in the coming months, driven by the seasonal return of renters alongside warmer weather.

Secondary Markets (Populations ~235-600k)

Secondary Markets Drill Down (M/M): Feb 2026 vs. Jan 2026

Notable Changes in Secondary Market Demand Over The Past Month

*Secondary markets demand scores are down -1.9% month-over-month, unique prospects are down -10.1%, and properties are down -8.3%.

Secondary markets saw the largest overall decline in active prospects of all market segments in February with over three quarters of markets in our secondary market rankings posting monthly declines with an average of (-12.4%). With the remaining markets including Halifax, Laval, Gatineau, and Kitchener all posting monthly growth in active prospects. Secondary markets are likely going to see the second highest rates of growth in the coming months, second only to primary markets which will likely lead the charge as rental demand rebounds in the spring.

Secondary Market Drill Down (Y/Y): Feb 2026 vs. Feb 2025

Notable Changes in Secondary Market Demand Over the Past Year

*Overall, year-over-year demand scores are up 46.3% year-over-year, with prospects down by -8.1%, and properties are down by -10.3%.

Secondary markets are the only market segment which posted annual declines in active prospects year-over-year, with three quarters of the markets in our rankings posting annual declines, with Surrey, Halifax, and Victoria being the only exceptions posting an average increase of 27% in active prospects year-over-year. Secondary markets also saw larger overall declines in active properties when compared to larger primary markets. The combination of declining prospects and properties suggests that while the market is undergoing some compression, relative demand per building is maintained with average prospects per property up 2.5% year-over-year.

Tertiary Markets (Populations ~100-235k)

Tertiary Markets Drill Down (M/M): Feb 2026 vs. Jan 2026

Notable Changes in Tertiary Market Demand Over The Past Month

*Demand scores in tertiary markets decreased by -4.1% month-over-month, unique prospects are down -6.0%, and available properties are down -2.0%.

The larger decline in active prospects relative to properties resulted in the largest overall decline in average prospects per property of all market segments down (-4.1%). Once again, not all markets within our rankings saw direct monthly declines, with approximately two-thirds of all tertiary markets in our rankings posting monthly declines with an average of (-10.7%), with the remaining markets including Richmond, Saskatoon, Abbotsford, Dartmouth, and East York; all posting month-over-month growth in their prospect counts. 

Tertiary Markets Drill Down (Y/Y): Feb 2026 vs. Feb 2025

Notable Changes in Tertiary Demand Over the Past Year

*Overall, year-over-year demand scores are up by 50.3%, unique prospects are up 10.8%, and available properties are up 5.3%. 

Year-over-year comparisons of the annual demand score are not an accurate reflection of market shifts, as the lower demand score divisor utilized in 2026 resulted in artificially inflated demand scores. Tertiary markets saw the largest increase in active prospects of all market segments year-over-year, with active renters on market growing by 10.8%. Much of this growth is a result of strong growth in BC markets, while many south western Ontario markets posted declines in prospect counts annually. 

Conclusion

February followed the expected seasonal cooling after January’s strong rebound in renter activity. National prospect counts declined -3.0% month over month, closely matching the six-year average for this period. While activity softened slightly after the start-of-year surge, February’s data points to a market that is stabilizing rather than continuing the steep declines seen over the past three years. Prospect counts were effectively flat year over year (-0.1%), reinforcing the view that much of the decline in rental demand has already been reflected in current market conditions.

Across major markets, February’s activity continued to support this picture of relative stability. While prospect counts declined in many markets, active property listings also contracted, which helped moderate the overall shift in demand conditions and kept prospects per property relatively steady. The top 10 markets, which typically experience larger swings than the national average, saw sharper declines in prospect counts. However, simultaneous declines in available properties softened the overall change in relative demand. This suggests that while renter activity remains below the highs seen during the post-pandemic surge, market conditions are beginning to normalize at a lower, more sustainable baseline.

Annual comparisons across market segments no longer show widespread declines in renter activity. Prospect counts increased across many markets year over year, indicating that the market may be transitioning into a period of relative stability ahead of the typical seasonal spring rebound in leasing activity. As seasonal momentum builds in the coming months, gradual improvements in renter engagement and leasing activity are likely to follow.

What’s Next for Canadian Rental Demand?

Looking ahead, the recovery in rental demand is expected to remain gradual and uneven across markets. Structural factors including affordability pressures, renter confidence, reduced in-migration, and varying levels of supply will continue to shape renter behaviour and limit the pace of demand growth.

As stability returns to the market, properties and markets that prioritize value, stability, and maintain competitive positioning will be better positioned to capture growing renter demand during the spring and summer months. Property managers and leasing professionals will need to maintain clear value propositions and remain responsive to evolving renter priorities in order to capture this seasonal uplift and sustain their competitive position.

Methodology

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:  St. Albert, AB received a demand score of 7.3 this month, versus 5.1 last month. St. Albert experienced a 2.2-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 St. Albert, AB, experienced a 43% increase in February 2026 versus January 2026. The year-over-year demand score in St. Albert was up 69% from February 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, St. Albert, AB, gained 12 spots to take the top spot in our Top Canadian Cities in Demand Rankings.

*This report provides month-over-month rental listing data for Feb 2026 versus Jan 2025 and a year-over-year comparison from Feb 2026 versus Feb 2025 . It also outlines the month-over-month and year-over-year trends in primary, secondary, and tertiary markets.