Market update Feb 2026: Hope on the horizon?

Faced with weaker tenant demand, property managers are increasingly leaning on move-in incentives, accepting that a modest concession beats the cost of a vacant property.

• Rentals.ca reports the national average asking rent declined for the 15th straight month to the lowest level in two and a half years, from $2,074 in November to $2,060 in December.

• At $2,498, the average asking rent in Toronto also hit its lowest level since early 2022.

• The average asking rent in Ontario overall fell month over month, from $2,296 in November to $2,277 in December.

• According to Rentals.ca, affordability challenges, reduced immigration, and weaker consumer confidence are driving the softer rental demand – a pattern PayProp Insights has been tracking throughout since early 2025.

• On the brighter side, Rentals.ca also notes that the pace of rent declines has started to slow, suggesting some renters are already responding to improved affordability.

• Meanwhile, the Canadian Real Estate Association (CREA) reports an average national home price of $673,335 in December – down 1.3% from November and 0.5% year over year.

• Ontario continues to have among the highest average home prices in the country (second only to British Columbia) at $800,420 – down 2.3% from last month’s average.

• According to CREA, home sales declined 2.7% from November to December.

• All provinces now sit deep in seller’s market territory, based on sales-to-new-listings ratios, largely reflecting seasonal declines in new listings rather than renewed demand strength.

• The Canada Mortgage and Housing Corporation reports the six-month trend in housing starts was flat from November to 264,428 in December.

More rental market headlines

The rise of lifelong renters in Canada – PayProp blog

Build Canada Homes announces what to expect in the year ahead – Storeys

Why housing starts are sizzling in Alberta, while they fizzle in Ontario – MSN