Rentsync National Rental Demand Report: January 2026

Demand Trends for the Canadian Market

December closed out the year with demand continuing to contract across Canada’s rental market, reinforcing the slow finish that emerged in late summer. Active renter counts declined again month over month, while available properties also pulled back, keeping competitive pressure muted rather than materially tightening. This balance suggests fewer renters actively searching overall, with many delaying moves altogether rather than competing for limited supply. As a result, year-end activity finished well below typical seasonal norms, extending the market’s weakest stretch since the post-pandemic recovery began.

Nationally, active prospects declined -7.3 percent month-over-month and -7.0 percent year-over-year, while active properties fell -3.5 percent month-over-month and -0.9 percent year-over-year. Prospects per property also softened, down -3.9 percent month-over-month and -6.1 percent year-over-year, reflecting a market where reduced renter participation continues to outweigh modest supply shifts. While December is historically a low-activity period, the depth of the slowdown underscores how affordability constraints and economic caution are suppressing mobility beyond normal seasonal patterns.

A Year-End Market Defined by Low Mobility

As 2025 came to a close, renter behaviour remained conservative. Fewer households entered the market, turnover slowed, and leasing velocity softened across all market tiers. Rather than driving competition, reduced supply has largely mirrored reduced demand, keeping pressure on properties manageable but leaving overall activity subdued.

This dynamic sets a restrained baseline heading into 2026. Without a meaningful improvement in affordability or renter confidence, any early-year rebound is likely to be measured, uneven, and slower to materialize in larger urban centres where cost sensitivity remains highest.

Breaking Down the Numbers:

National Stats (Month-over-Month):

• Active Prospects: -7.3%
• Active Properties: -3.5%
• Prospects per Property: -3.9%
  
  

National Stats (Year-over-Year):

• Active Prospects: -7.0%
• Active Properties: -0.9%
• Prospects per Property: -6.1%
  
  

By Market Segment (Active Prospects, MoM):

• Tertiary Markets: -11.8%
• Secondary Markets: -8.7%
• Primary Markets: -5.9%
  
  
  

What to Expect Next

January will bring the usual seasonal rebound in renter activity, but early signals suggest it will start from a lower baseline than prior years. Demand is expected to recover gradually rather than sharply, with affordability pressures continuing to limit how quickly renters re-enter the market.

Until confidence improves, leasing activity will remain cautious. Properties that clearly communicate value, flexibility, and livability will be best positioned to compete in a market where renter intent is selective and overall demand remains compressed.

⚠️ PLEASE NOTE: 

This January 2026 report which references December 2025 demand figures uses updated methodology in the collection and aggregation of demand values, which unlocks an expanded list of markets within the analysis of this and future demand reports. This change in data collection method resulted in changes to base variables and as such, includes updated demand score divisors in this report and future reports.

Top Canadian Cities in Demand

Notable Changes in Demand Over the Past Month

Demand scores declined by (-3.9%) in December across our top markets in demand. Active prospects declined (-7.3%), while active properties declined by (-3.5%), resulting in average prospects per property declining by (-3.9%). Moving into the final month of the year, the market experienced a continued exodus of renters as many more prospective renters chose to delay new housing decisions until the new year. Amongst the top 10 markets in demand, prospect counts declined at a higher relative rate when compared to the broader country at (-7.8%) monthly. While a majority of markets saw relatively small monthly declines in active property counts, some markets such as Richmond and North York saw outsized declines in active properties which resulted in the top 10 as a whole showing an above average decline in active properties for December.
 

Month-Over-Month (M/M)

• Primary: Demand scores are down -2.8%
• Secondary: Demand scores are down -2.3%
• Tertiary: Demand scores are down -11.2%

Month-over-month (M/M): Within our top 40 markets, demand scores were down (-3.9%) in December 2025 compared with November 2025. December likely marks the low point in renter demand with 2026 likely showing moderate recovery albeit below the long-term average.

Notable Changes in Demand Over the Past Year

Annual demand comparisons show a trajectory of declining rental activity from 2024 to 2025 with active prospects down (-7.0%), and active properties relatively flat at (-0.9%). Among the top 10 markets in demand, conditions show a similar trend with prospect counts down (-9.7%), and active properties down (-3.9%), indicating a greater relative decline to the broader average amidst the top markets. Demand scores however show a different story with scores up 34% across the top market in rental demand. These scores however are the result of a lower demand score divisor this year which enabled markets with lower relative prospect counts to maintain higher overall demand scores; and as such the year over year demand score comparisons do not directly reflect current market conditions.

Year-Over-Year (Y/Y)

• Primary: Demand scores are up 22.2%
• Secondary: Demand scores are up 46.3%
  
• Tertiary: Demand scores are up 28.7%
  
  

Year-over-year (Y/Y):  Within our top 40 markets, demand scores are up 34.04% in December 2025 compared with December 2024. While we are not likely to see a full recovery, we will continue to see greater stabilization of market fundamentals in the coming year.

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: Dec 2025 vs. Nov 2025

Notable Changes in Primary Markets Over The Past Month

*Overall demand scores are down -2.8% month-over-month, unique prospects are down -5.9%, and properties are down -3.2%.

Primary markets experienced the lowest relative monthly declines in active prospects of all market segments, alongside a monthly decline which fell well below that of annual comparisons in December. This more moderate decline was primarily due to two markets posting positive movement in active prospects including North York, and Vancouver; with the remaining markets in our primary market rankings showing an overall average decline of (-8.2%) which is in line with the overall national trend, and sits just below the decline posted by secondary markets of (8.7%). 

Primary Market Drill Down (Y/Y): Dec 2025 vs. Dec 2024

Notable Changes in Primary Market Demand Over The Past Year

*Year-over-year demand scores are up 22.2%, prospects are down -7.9%, and properties are up 7.7%.

Year-over-year comparisons of the annual demand score do not accurately reflect market shifts. The lower demand score divisor used in 2025 artificially inflated demand scores, making direct comparisons unreliable.

Year-over-year changes in active prospect counts and property availability, however, point to increased competition among available properties. This appears to be driven by a combination of declining renter demand and a gradual rise in supply. On an annual basis, Calgary and Vancouver both saw growth in prospect counts. At the same time, a larger number of markets experienced a surge in available supply, including Ottawa, Edmonton, Calgary, Vancouver, Winnipeg, and Montreal.

Secondary Markets (Populations ~235-600k)

Secondary Markets Drill Down (M/M): Dec 2025 vs. Nov 2025

Notable Changes in Secondary Market Demand Over The Past Month

*Secondary markets demand scores are down -2.3% month-over-month, unique prospects are down -8.7%, and properties are down -6.5%.

Secondary markets experienced a relatively moderate monthly decline in renter activity. While recent months have seen Windsor and Halifax grow their populations of active renters with each consecutive month, December put a stop to that trend with both markets posting some of the highest monthly declines in prospect counts Halifax down (-22.3%), and Windsor down by (-18.1%). Laval was the only market in December to show growth in active prospects up 4.2% month-over-month.

Secondary Market Drill Down (Y/Y): Dec 2025 vs. Dec 2024

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 -6.6%, and properties are down by -8.9%.

Similarly to primary markets Year-over-year comparisons of demand scores are not an accurate reflection of market shifts, as the lower demand score divisor utilized in 2025 resulted in an increase to demand scores not directly tied to an increase in rental activity. Secondary markets posted the lowest annual declines in prospect counts of all market segments due in part to 5 of the top 10 secondary markets showing annual growth in active prospect counts, including Victoria, Halifax, London, Etobicoke, and Surrey. 

However, while these markets rebound in active prospect counts,  this growth was largely offset by a simultaneous increase in available properties in all but Etobicoke and Victoria. As a result, market conditions remained relatively tight, with fewer prospects per available unit despite rising prospect counts. This imbalance underscores that, although demand has shown signs of recovery in select secondary markets, supply growth continues to outpace renter activity, limiting improvements in overall leasing conditions.

Tertiary Markets (Populations ~100-235k)

Tertiary Markets Drill Down (M/M): Dec 2025 vs. Nov 2025

Notable Changes in Tertiary Market Demand Over The Past Month

*Demand scores in tertiary markets decreased by -11.2% month-over-month, unique prospects are down -12.3%, and available properties are down -1.2%.

Tertiary markets experienced the largest monthly decline in active prospects of all market segments in December. All of the tertiary markets within our rankings experienced a decline in their active prospect counts with the exception of Abbotsford which experienced a 3.5% increase in active prospects in December. 

Tertiary Markets Drill Down (Y/Y): Dec 2025 vs. Dec 2024

Notable Changes in Tertiary Demand Over the Past Year

*Overall, year-over-year demand scores are down by -28.7%, unique prospects are down -7.0%, and available properties are up 3.1%. 

Similarly to primary, and secondary markets Year-over-year comparisons of demand scores are not an accurate reflection of market shifts, as the lower demand score divisor utilized in 2025 resulted in an increase to demand scores not directly tied to an increase in rental activity. The annual decline in active prospects in Tertiary markets (-7.0%) alongside the increase of available properties by 3.1% resulted in tighter market conditions for these communities with average prospects per property down (-9.9%) annually. There were two exceptions to this trend in December Burnaby, and Richmond which both saw available properties decline at a greater level than the decline in active prospects which resulted in annual gains in average prospects per property and slightly improved market conditions relative to the broader trend.

Conclusion

December marked the low-water mark for Canadian rental demand over the past two years, closing out 2025 with a fifth consecutive month of declining activity following the summer peak. While national rental demand continued to fall month-over-month, the pace of decline eased into year-end, signalling that much of the seasonal compression has already been absorbed. Renters who remained active through December appear more motivated and more likely to carry their searches into the new year, positioning the month as a transitional point rather than a further deterioration in market conditions.

Despite the scale of the 2025 slowdown, reflected in the -29.9 percent year-to-date decline in active prospects, the narrowing gap between recent monthly declines and year-over-year comparisons suggests that much of the longer-term softening in demand is already priced into current market conditions. As seasonal pressure eases and activity begins to rebound, the data points toward stabilization in 2026 rather than a continuation of accelerated decline.

What’s Next for Canadian Rental Demand?

January is expected to bring some near-term relief as seasonal demand returns and prospect counts recover from December lows. However, this rebound is unlikely to restore demand to pre-2025 levels. Rental markets will continue to contend with a smaller, more cautious renter pool shaped by affordability constraints, reduced mobility, softer in-migration, and ongoing economic uncertainty. These dynamics point to a recovery that will be uneven, market-specific, and highly localized, particularly as elevated supply levels persist.

Looking ahead, the trajectory of rental demand in 2026 will depend on how quickly renter confidence returns and whether affordability pressures begin to ease. Markets and properties that align closely with renter priorities will be best positioned to capture demand during the seasonal upswing. For property managers and leasing teams, the early months of the year will be critical for refining positioning, adjusting strategy, and competing effectively in a market that appears to be stabilizing rather than rebounding sharply.

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: Burnaby, BC received a demand score of 5.9 this month, versus 5.5 last month. Burnaby experienced a 0.4-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 Burnaby, BC, experienced a 7% increase in December 2025 versus November 2025. The year-over-year demand score in Burnaby was up 51% from December 2024.

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, Burnaby, BC, gained 4 spots to take the top spot in our Top Canadian Cities in Demand Rankings.

*This report provides month-over-month rental listing data for December 2025 versus November 2025 and a year-over-year comparison from December 2025 versus December 2024. It also outlines the month-over-month and year-over-year trends in primary, secondary, and tertiary markets.