One in five rental listings now offers move-in incentive as market shifts in renters’ favour: report

As rents fall and vacancies rise in many cities across the country, landlords are becoming increasingly competitive with incentives to attract tenants. About one in five rental listings in Canada is now offering some kind of move-in incentive, according to data from Rentals.ca.

Incentives range from one or more months of free rent to waived parking and utility fees, gift cards and cash bonuses.

New builds in the GTHA offering the most incentives

Source: Rentals.ca

Newly built rental apartments in the Greater Toronto and Hamilton Area are facing some of the most competitive conditions. These buildings are competing for tenants against each other and against a growing supply of condos on the secondary rental market.

Two-thirds of new purpose-built rental projects in the GTHA offered incentives in the first quarter of 2026, up from 62 per cent a year ago and just 32 per cent two years ago, according to Urbanation.

The most common offer was two months of free rent, given by nearly half of all projects, up from 32 per cent in 2025.

Other frequently-offered incentives included a cash move-in bonus (17 per cent), parking or storage locker included (nine per cent), 1.5 months of free rent (six per cent), three months of free rent (four per cent), and internet included (four per cent).

Gap between asking rent and effective rent is widening

The average incentive in Q1-2026 reduced the face rent by about $379 per month for a typical GTHA unit — up from $292 in 2025 and $163 in 2024.

 At the market’s peak in 2023, that discount was only around $76 a month. On a per-square-foot basis, asking rents averaged $4.05 but effective rents after incentives came in at $3.52.

Ottawa’s vacancy rate has doubled in two years

Ottawa’s vacancy rate in stabilized rental buildings hit 3.2 per cent in Q1-2026, double what it was two years ago.

While asking rents held relatively steady at $3.28 per square foot, incentive-adjusted rents fell to $2.91, an 11.4 per cent discount. 

Two free months of rent was the most common offer, followed by one free month and then three. 

The biggest discounts were in Gloucester, Britannia/Carlingwood, and Carlington/Iris, where effective rents were cut by more than 14 per cent.

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