Renters gain leverage as incentives and lower rents reshape the market
Landlords across Canada are offering free months, internet and moving bonuses as asking rents fall and vacancy rises. More supply is expected through 2026.
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By Torontoer Staff
The rental market in Canada has swung back in renters' favour. Landlords are advertising offers such as up to three months free rent, move-in bonuses and a year of free internet as average asking rents fall and vacancy rates rise.
After a post-pandemic spike, rental costs softened in 2025 and incentives have become common across major cities. The trend is tied to a surge in new rental construction, rising vacancy and a slower pool of renters, experts say.
What landlords are offering now
Promotions vary by building and market, but offerings now routinely include free months, utility or internet credits, waived pet fees, free parking and moving allowances. Purpose-built rental projects competing for tenants are using the incentives to reduce vacancy quickly.
- Two to three months free rent
- One year of complimentary internet
- $500 move-in bonuses or moving allowances
- Waived pet fees and free parking
- Short-term reduced rents to attract initial tenants
It’s a race to the bottom. These landlords are competing with one another, driving the prices down.
Marco Pedri, Shoreline Realty
How rents and vacancies moved in 2025
Analysis from Rentals.ca and Urbanation shows average asking rents in Canada fell 3.1 per cent in 2025 and are down 5.4 per cent from two years earlier. December 2025 marked the 15th straight month of year-over-year national declines.
City-level annual changes in December 2025 included roughly an 8 per cent drop in Vancouver, 5 per cent drops in Toronto and Calgary, 2 per cent in Montreal and 0.5 per cent in Ottawa. The national average asking rent was $2,060, down 2.3 per cent from a year earlier but still higher than before the pandemic.
Supply, demand and policy pressures
A record number of rental housing starts through 2024 and 2025 has translated into many new units coming online. About 180,000 rental units are under construction across Canada, increasing choice for renters as projects finish.
The math works better for rentals than for large home ownership projects right now.
Mathieu Laberge, CMHC chief economist
CMHC reported a fall vacancy rate of 3.1 per cent for purpose-built rental apartments, up from 2.2 per cent the previous year and above the 10-year national average. Analysts point to slower population growth after recent federal immigration limits and the seasonal lull in winter moving as contributors to softer demand.
Property managers are coping with a double whammy — lots of new supply available, plus a relatively shallow pool of renters.
Giacomo Ladas, Rentals.ca
What this means for renters
For renters, the market offers negotiating leverage and the chance to prioritise features that matter, such as neighbourhood, building amenities or lease terms. Some renters are locking into rent-controlled units while prices are lower, while others are using incentives to offset moving costs.
Real estate agents say more people chose to rent in 2025 as many potential buyers delayed purchases while waiting for sales prices and interest rates to stabilise.
The need for real estate hasn’t changed, but in 2025 how people chose to access it was a lot more on the leasing side than the purchase side.
Tom Storey, Royal LePage Signature Realty
- Compare advertised incentives and check the fine print on duration and eligibility
- Ask about ongoing fees such as utilities, parking and pet policies
- Consider lease length and whether rent control applies in your province
- Inspect building completion timelines and developer reputation for new projects
Experts do not expect a sharp rebound in demand through 2026. With more supply scheduled to come online, turnover rents should remain under pressure and give renters continued options.
When the turnover rents start going down, there’s more fluidity in the market.
Mathieu Laberge, CMHC
Rents are still higher than before the pandemic and affordability remains a concern for many households. For now, renters have more room to shop, negotiate perks and choose units that better match their priorities as the market balances toward increased supply.
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