Canadians searching for rental housing are increasingly being offered move in incentives as vacancy rates climb and competition grows among landlords and property managers.
New analysis released by Rentals.ca and Urbanation says approximately one in five rental listings across Canada now includes some form of incentive aimed at attracting tenants.
The incentives range from free rent and reduced parking fees to internet packages, gift cards, and cash bonuses.
According to the report, the trend has become especially common in the Greater Toronto and Hamilton Area, where a surge in newly completed rental buildings and increased competition from condo rentals have created softer leasing conditions.
During the first quarter of 2026, 66 per cent of newly completed purpose built rental projects in the region offered incentives, compared to 32 per cent two years ago.
The most common offer was two months of free rent, accounting for nearly half of all projects offering incentives.
Urbanation President Shaun Hildebrand says the growing use of incentives reflects changing market conditions as supply rises and vacancy rates increase.
The report found incentives lowered effective rents by an average of 13 per cent, representing monthly savings of roughly $379 for renters.
In Ottawa, the vacancy rate for purpose built rental buildings reached 3.2 per cent earlier this year – double the level recorded two years ago – while incentive adjusted rents dropped more than 11 per cent below advertised asking prices.
While the report focuses largely on major urban centres, housing analysts say smaller communities connected to larger regional housing markets, including Northumberland County, could also see indirect effects as renters continue searching for more affordable housing options outside the GTA.
(Written by: Joseph Goden)
