Housing Rental Outlook 2026 - Ontario and British Columbia.

Big picture for 2026

• Canada enters 2026 with vacancy higher and asking rents easing in major cities after a big supply wave in 2024–25, especially new purpose‑built rentals and investor condos.

• National forecasts see a fragmented market: some regions softening with more vacancies, others (notably parts of B.C. and specific Ontario submarkets) staying tight and supporting modest rent growth

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The 2026 rental market in Ontario and British Columbia reflects a temporary period of softer conditions within a long‑term context of limited supply. This page summarizes current data and outlines how vacancy, rent levels, and regulatory changes may affect individual renters, relocating employees, and corporate housing files.

National Rental context

Across Canada, new purpose‑built rentals and investor‑owned units added in 2024–2025 have increased vacancy and slowed rent growth entering 2026. Several forecasts describe 2026 as a year of “moderation,” with softer conditions in some urban cores but continued pressure in high‑demand corridors

Ontario: short‑term relief, long‑term gap

Entering 2026, Ontario’s average asking rents are reported slightly lower than a year earlier, reflecting increased supply and slower population growth from temporary residents. At the same time, medium‑term analyses still project a significant deficit of rental units by 2034, with required construction estimated at about 418,000 units versus roughly 211,000 actually expected.

For 2026, this combination points to a window where some segments—especially smaller units in large urban centres—offer more choice and slightly more negotiating room, while family‑sized and well‑located units remain highly competitive.

British Columbia: stabilizing after rapid rentals growth

British Columbia enters 2026 after a notable wave of new rental supply and policy changes aimed at improving affordability, which together have helped stabilize rent growth. Forecasts anticipate modest or flat rent increases overall, but continued low vacancy in key parts of Metro Vancouver, where rates are projected to remain near or below the 1.5% range.

Implications for renters and employers

For individual renters, 2026 may offer slightly more time to make decisions in some markets, but strong applications and realistic budgets remain essential where vacancy is still low. For employers and mobility programs, the outlook suggests opportunities to secure units on more disciplined terms in certain segments, while planning for continued scarcity of larger and well‑located units in both provinces

How AHOM uses this outlook

AHOM Real Estate integrates these forecasts into rental searches by calibrating expectations on timing, competition level, and pricing for each file. The objective is not to predict exact rent levels, but to position clients within current conditions while remaining alert to local shifts over the course of 2026.