Rentsync National Rental Demand Report: September 2026

Demand Trends for the Canadian Market

August continued to align with seasonal trends, posting a decline in rental demand.

Active prospects fell -5.7% month over month nationally, following July's summer peak. This kind of pullback is typical for late summer, as the surge tied to the summer leasing season starts giving way to the slower months ahead.

That said, this month's decline was milder than what we saw over the same period the past two years: active prospects dropped -7.6% in August 2025 and -10.4% in August 2024. That comparison suggests August's dip reflects a normal seasonal softening, rather than any deeper weakening in demand.

Year to date, active prospects through the first eight months of 2026 are -3.1% below the same period in 2025, a slight widening from the -2.9% gap recorded in July. Year over year, national active prospects were down -3.9%, a softer decline than the -6.1% drop recorded in August 2025. Annual comparisons have been improving for four months running now, pointing to a gradual stabilization in underlying demand.

Top Markets Diverge as Demand Shifts Eastward

Among the top 50 markets in demand, active prospects declined -2.1% month over month, a smaller drop than the national average. Active properties fell at an even lower rate of -1.5%, which kept average prospects per property nearly flat, down just -0.6%.

The top 10 markets moved in the opposite direction, as they often do. Active prospects there climbed +8.5% monthly while active properties declined -3.6%. That combination pushed average prospects per property up +12.6% for the month, and paired with a +1.3% increase in average leads per prospect, points to mildly improved demand and market conditions in these top markets.

BC and Alberta have driven most of the demand growth throughout 2026, but August brought a shift. Monthly gains were concentrated in Southeastern Ontario and Quebec markets, while several BC markets softened.

The broader market still reflects the structural pressures Canadian renters are facing. Affordability concerns, economic and employment uncertainty, and weaker renter confidence continue to weigh on mobility and decision making. Fewer international student arrivals, along with more availability from new condo and purpose-built rental completions, may also be contributing to softer demand in some markets. None of this points to accelerating structural weakness, just as the narrowing annual gap doesn't point to a turnaround. Coming off the seasonal peak, demand through the fall leasing season is likely to stay uneven and highly market specific.

Breaking Down the Numbers:

National Stats (Month-over-Month):

•  Active Prospects: -5.7%
• Active Properties: -0.5%
• Prospects per Property:  -5.2%
  

National Stats (Year-over-Year):

• Active Prospects: -3.9%
• Active Properties: +1.3%
• Prospects per Property:  -5.1%
  
  

By Market Segment (Active Prospects, MoM):

• Primary Markets: -6.0%
• Secondary Markets: +13.6%
• Tertiary Markets: +1.0%

Top Canadian Cities in Demand

Notable Changes in Demand Over the Past Month

Demand conditions across our top markets softened in August, in line with broader national cooling. Consistent with the national trend, active prospects across the top 50 markets fell (-2.1%) monthly, a relatively smaller decline than the national average, while available properties slowed by (-1.5%). This left average prospects per property flat (-0.6%). The top 10 markets in demand ran in opposite direction to the broader market, with active prospects up 8.5% monthly and available properties down (-3.6%), lifting average prospects per property 12.6%.
 

Month-Over-Month (M/M)

• Primary: Demand scores are up +3.2%
• Secondary: Demand scores are up +11%
• Tertiary: Demand scores are up +6.6%

Month-over-month (M/M):  Within our top 50 markets, demand scores were up 4.6% in August 2026 compared with July 2026. This increase reflects the lower demand score divisor applied in August rather than stronger renter activity, as active prospects softened across the top 50 markets, and in most segments.

The secondary market segment was the only exception, where prospects rose 13.6% on the month, while primary market prospects fell (-6.0%) and tertiary prospects were nearly flat, up 1.0%. The result is a set of demand scores that moved higher even as underlying prospect activity followed the seasonal decline. 

Notable Changes in Demand Over the Past Year

Year-over-year, our top 50 markets saw prospect growth of 3.2% on average, while available properties edged down (-0.9%), raising average prospects per property 4.2%. The top 10 markets continued to outperform on an annual basis, with active prospects up 3.9% and prospects per property up 15.9%. This annual gain partly reflects the (-10.3%) decline in available properties within the group, as several smaller markets carrying fewer properties climbed into the top 10.

Demand scores across all three segments posted large annual gains, but these increases stem primarily from the lower demand score divisor applied in 2026 rather than a proportional acceleration in renter activity. With prospect growth in the low single digits across the top 50 and within the segments, the scale of the demand score gains overstates the underlying movement in demand.

Year-Over-Year (Y/Y)

• Primary: Demand scores are up +58.5%
• Secondary: Demand scores are up +48.8%
• Tertiary: Demand scores are up +55.6%
  
  

Year-over-year (Y/Y):  Within our top 50 markets, demand scores are up 56.4% in August 2026 compared with August 2025. Despite the scale of these annual gains, underlying prospect activity tells a more measured story, with growth in the low single digits across the top 50 and across all three market segments.

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: Aug 2026 vs. July 2026

Notable Changes in Primary Markets Over The Past Month

*Overall demand scores are up 3.2% month-over-month, unique prospects are down (-6.0%), and properties are down (-4.2%).

Primary markets softened in August, with seven of the ten markets in our primary rankings posting declines in active prospects. The gains that did appear came from eastern markets, including North York leading the segment up 19.6%, followed by Montreal up 14.7% and Winnipeg up 7.7%. The steepest monthly declines came from the Western markets that had led earlier in 2026, with Vancouver down (-16.9%), Edmonton down (-13.6%), and Calgary down (-4.8% monthly. This marks a shift in monthly momentum toward Eastern markets, though it represents a single month rather than a confirmed shift in broader geographic trends.

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

Notable Changes in Primary Market Demand Over The Past Year

*Year-over-year demand scores are up 58.5%, prospects are up 1.0%, and properties are down (-4.3%). 

Year-over-year comparisons for primary markets present a more measured picture than the segment's 58.5% demand score gain would suggest, with active prospects up just 1.0% on average. Montreal led annual prospect growth at 45.3%, followed by Winnipeg at 10.7% and Ottawa at 8.7%. Conversely, the markets that lead throughout the earlier months of 2026 specifically, Vancouver, Scarborough, and Edmonton, are all down (-11.3%), (-10.1%), and (-6.8%) respectively.

Demand scores, although suggestive of a rebounding in demand, are a reflection of the lower divisor used to calculate demand scores in 2026. The overall picture is of modest overall movements, alongside a divergence between individual markets.

Secondary Markets (Populations ~235-600k)

Secondary Markets Drill Down (M/M): Aug 2026 vs. July 2026

Notable Changes in Secondary Market Demand Over The Past Month

*Secondary markets demand scores are up 11.0% month-over-month, unique prospects are up 13.6%, and properties are up 10.1%. 

Secondary markets posted the strongest monthly prospect growth of any segment in August, with active prospects up 13.6% and available properties up 10.1%. Eight of the top 10 secondary markets in our rankings posted monthly growth, however much of this was concentrated in a single market. Hamilton led the segment at 55.4%, a jump that reflects a combination of expanded property coverage alongside an increase in active prospects. Aside from Hamilton, gains were led by Windsor at 46.4%, Gatineau at 34.2%, and Oshawa at 29.2%. Halifax recorded the steepest monthly decline at (-17.0%), while Surrey was effectively flat at (-0.2%).

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

Notable Changes in Secondary Market Demand Over the Past Year

*Overall, year-over-year demand scores are up 48.8%, prospects are up 14.5%, and properties are up 15.4%.

Secondary markets maintain their position as the segment with the largest overall gains in rental demand in August 2026, with prospects up 14.5% alongside a 15.4% rise in available properties, while demand scores are up 48.8%. As with the monthly figures, Hamilton is the dominant contributor.

Beyond Hamilton, Gatineau led annual prospect growth at 28.8%, followed by Kitchener at 19.1% and Windsor at 13.7%. Etobicoke recorded the steepest annual decline at (-8.1%), followed by Surrey at (-7.2%). The segment's 48.8% demand score gain, like those elsewhere, is amplified by the lower 2026 demand score divisor.

Tertiary Markets (Populations ~100-235k)

Tertiary Markets Drill Down (M/M): Aug 2026 vs. July 2026

Notable Changes in Tertiary Market Demand Over The Past Month

*Tertiary markets demand scores are up 6.6% month-over-month, unique prospects are up 1.0%, and properties are down (-0.4%) 

Tertiary markets were mixed in August, with six of the ten markets in our tertiary rankings posting monthly gains in active prospects, resulting in overall prospect counts increasing by 1.0%. East York led the segment up 38.3%, followed by Richmond at 16.5% and Oakville at 14.7%. The steepest declines were focused in British Columbia, led by Kelowna at (-36.9%), with Burnaby and Abbotsford each down (-9.9%) and Coquitlam down (-7.9%). 

Kelowna's softening reflects a shift from the scarcity of recent years toward more balanced conditions, as reduced international student arrivals and a greater share of domestic students choosing on-campus housing pulled down the out-of-province demand that typically drives the market in August. Higher interest rates and cost-of-living pressure have added to this, with more students and younger workers choosing to stay in place or share housing rather than lease at market rates, a dynamic evident across several BC markets this month.

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

Notable Changes in Tertiary Demand Over the Past Year

*Overall, year-over-year demand scores are up 55.6%, unique prospects are up 1.1%, and available properties are down (-2.4%). 

Year-over-year, tertiary markets posted prospect growth of 1.1% alongside a 55.6% increase in demand scores, the latter again reflecting the lower 2026 demand score divisor rather than a genuine acceleration in renter demand and activity. East York led annual prospect growth at 36.0%, followed by Dartmouth at 23.4% and Sudbury at 15.4%.

The sharpest annual declines came from the British Columbia markets that had led the segment through much of 2026, with Kelowna down (-40.1%) and Coquitlam down (-18.4%), consistent with the softening in student and out-of-province demand described above. These declines mark a clear reversal for the BC tertiary markets that had paced the segment earlier in the year.

Conclusion

August brought the seasonal decline in Canadian rental demand that typically follows July's summer peak, marking a shift from the growth we saw in July. That's consistent with the post-peak cooling we'd expect this time of year. Year over year, the annual gap also narrowed, from -5.8% in July down to -3.9% in August.

Nothing about August points to a real shift in market direction. The market is still operating below last year's levels overall, and this month's movement lines up with normal seasonal expectations. August's decline is best read as seasonal movement within a market that remains soft, not the start of a new trend.

The conditions shaping demand haven't changed much. Affordability constraints, economic and employment uncertainty, and cautious renter confidence continue to weigh on mobility. After years of rising rents, many renters are choosing to stay put longer, or add roommates, rather than move at current market rates. At the same time, federal study permit caps have reduced the pool of international students who typically drive August activity in university markets. Combined with the wave of new condo and purpose-built rental completions we've seen throughout 2026, supply has outpaced the demand uplift we saw over the summer.

What’s Next for Canadian Rental Demand?

The fall leasing season is likely to stay uneven and highly market specific. Now that we're past the summer peak, the coming months should follow a fairly typical pattern of late-summer cooling, though the softer annual demand base points to a more muted fall than we saw in 2025.

Worth watching: August's shift in momentum toward Eastern Ontario and Quebec, alongside softening in several BC markets. One month isn't enough to confirm a lasting change to the regional patterns that have shaped most of the year, but it's a trend worth tracking.

For property managers and leasing professionals, August is a reminder to look past headline demand scores and focus on the underlying prospect trends in each market. With a smaller, more cautious renter pool, and negotiating power shifting toward renters in higher vacancy markets, staying competitively positioned will matter through the fall leasing season.

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:  Lethbridge, AB received a demand score of 10.0 this month, versus 6.2 last month. Lethbridge experienced a 3.8-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 Lethbridge, AB, experienced a 61% increase in August 2026 versus July 2026. The year-over-year demand score in Lethbridge was up 166% from August 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, Lethbridge, AB, claimed the number 1 position in our Top Canadian Cities in Demand Rankings, climbing from 12th place the previous month.

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