Landlords cautious and renters confident in 2026 market

Landlord sentiment is best described as “cautious” as we head deeper into 2026, judging from new data from liv.rent.

The rental listing platform’s 2026 Canada Rental Market Trend Report shows that only 34% of landlords report being profitable, while 66% say they are either only breaking even (28%) or losing money (38%).

Nearly half (43%) report that current rents do not fully cover their expenses.

When asked about application volumes, 44% of landlords say they are receiving interest, but not as much as expected.

At the same time, renter sentiment has improved. The share calling the market “extremely competitive” fell from 67% in 2024 to 22% in 2025, with almost half now describing conditions as “manageable.”

Renters’ perception about rent pricing has also shifted quite significantly: 79% view rents as fair or reasonable, up from 50% the year before, while those saying rents are too high fell sharply from 43% to 16%.

What stands out is how modest the landlord-renter divide has become in how well the market is serving their needs. Waning landlord optimism and rising renter confidence have brought both sides closer together after previously sitting at opposite extremes.

Renters’ emboldened outlook is reflected in the growing use of move-in incentives by housing providers – but overall, the market feels more stabilized than skewed.

liv.rent’s survey also finds that most renters have no plans to move in the coming year, suggesting lower tenant turnover ahead. For landlords and especially trained professional property managers, that’s manageable territory. Negotiating lease terms is far preferable to vacancies that bring in no income at all.

Zooming out, today’s softer conditions may not last. Both liv.rent and PayProp have noted that falling housing starts today could mean fewer completed units between 2028 and 2030. If construction activity stays subdued, supply constraints could drive upward pressure on rent prices – and a shift back in favour of housing providers.

Meanwhile, competitive, hyper-local rent-setting, diligent collection admin, and sharper marketing will attract the right renters, iron out arrears, and not price great tenants out of the market.

And PayProp is here to support you through it. Explore the blogs linked throughout this article, or visit our full blog page for even more expert insights to help you navigate challenging times.

And of course, there’s the platform itself — built with automated rent collection tools proven to increase on-time payments, along with arrears management features designed to help reduce outstanding balances and keep your cash flow steady.

More rental market headlines

Changing driving habits hint at quiet shift in renter priorities – PayProp blog

Canadian university cities facing surprising rental market downturn – The Globe and Mail

2025 Year in Review – Rentals.ca