What does a federal Liberal majority mean for Canada’s rental housing industry?
By Tony Irwin, President and CEO, RHC
A majority government would bring more policy certainty. For the rental housing industry, that matters because purpose-built rental projects are planned, financed, and built over many years. The sector needs a stable policy environment to make long-term decisions. In practical terms, a majority government is better placed to move from announcements to implementation. It reduces the risk that key housing measures are delayed or weakened by political instability.
Political stability is generally helpful for investor confidence because it reduces policy risk. Investors are more likely to commit capital when they believe government policy will be consistent and durable. That said, stability by itself will not unlock investment. Capital will still flow to projects that are financially viable. Governments also need to address the core issues affecting feasibility, including development charges, taxes, construction costs, approval timelines, and access to financing.
The policies most likely to move first are the ones the government has already signalled and can advance through the budget or existing programs. That would likely include development charge relief, tax measures for purpose-built rental, changes to federal financing programs, and continued work on Build Canada Homes. From our perspective, the key near-term measures are clear: lower development charges, make the accelerated capital cost allowance permanent, move ahead with a modernized MURB incentive, and improve the way CMHC programs work for rental housing providers. Those are practical measures that could make a real difference.
The next budget will be important because it will show whether the government is focused on the real barriers to new supply. We will be looking closely at three areas: cost relief, tax policy, and financing. More specifically, we will be watching for meaningful action on development charges, long-term tax measures that improve project viability, and clear direction to make CMHC programs more accessible, more predictable, and better suited to rental housing development.
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NATIONAL OUTLOOK
A majority government would have more room to attach affordability and other policy conditions to federal funding. The issue is whether those requirements are designed in a way that still allows projects to move forward. If the conditions are too rigid or too costly, they can reduce participation and limit overall supply.
The main risk is that the federal government moves further into areas that are primarily provincial responsibilities. Rent regulation and most tenant protection rules are set by provinces, and overlap can create uncertainty without doing much to increase supply. If federal policy starts to increase regulatory uncertainty without improving project economics, that could discourage new investment in rental housing.
Under a majority mandate, the federal government could take a stronger leadership role on housing. The sector benefits most when governments are working toward the same goal: making it faster, less costly, and more predictable to build rental housing.
The biggest risk is that policy goals become disconnected from the economics of getting housing built. If governments add more requirements without addressing costs, delays, and financing challenges, fewer projects will be viable.
A majority government can accelerate rental housing development, but that will depend on the policy choices it makes. If the government focuses on reducing barriers, improving tax and financing tools, and working with provinces and municipalities to lower costs and speed up approvals, it can make a meaningful difference. If it adds more conditions without improving project economics, it could instead constrain new development.
Government of Canada releases Spring Economic Update 2026
On April 28, Finance Minister François-Philippe Champagne tabled the 2026 Spring Economic Update, which gives a mid-year checkup on Canada’s financial health, provides transparency on the country’s economic performance, updates fiscal projections following the Federal Budget, and introduces targeted investments for growth.
Some of the key measures and initiatives from the Spring Economic Update include:
• The Canada Strong Fund, the country’s first national sovereign wealth fund, which will invest in strategic Canadian projects and companies and enable Canadians to receive financial returns through investments in the fund
• Investing more than $125 billion in 21 nation-building initiatives that will support 60,000 jobs during construction
• A whole-of-government approach to redevelop and support Canada’s defence industry
• Launching an initiative to recruit, train, and hire 80,000 to 100,000 new skilled trade workers by 2030-31
• Reducing the contribution rate of the base Canada Pension Plan from 9.9 per cent to 9.5 per cent, effective January 1, 2027
• Pausing the Fuel Excise Tax until Labour Day, reducing fuel costs by 10 cents/L on gasoline and 4 cents/L on diesel
• Investing $755 million to expand access to sport, which includes providing more support for worldclass athletes
• Providing $4.3 billion in funding for essential services for Indigenous Canadians
• Investing about $1 billion to maintain small craft harbours and modernize critical infrastructure for fishers across the country
The Spring Economic Update 2026 also includes investments, initiatives, and directives related to building more housing and making housing more affordable for Canadians. Some of these measures include:
• Reducing development charges and providing targeted GST relief to lower the cost of purchasing new homes
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• Partnering with provinces and municipalities to streamline rules and modernize building codes, which includes factory-built and modular housing, to build homes faster
• Supporting innovation in construction through investments in construction technology
• Accelerating more than $7 billion in low-cost financing to CMHC to help move construction projects forward and increase the rental housing supply
• Providing housing supports for people experiencing homelessness, including safe housing options for victims of gender-based violence
To read the whole document, visit https://www.budget.canada.ca/update-miseajour/2026/report-rapport/ pdf/update-miseajour2026-eng.pdf.
Federal Liberals moving to take control of House of Commons committees
According to a recent announcement from House of Commons leader Steven MacKinnon, the federal Liberal government will seek to change the standing orders (i.e., the rules governing the House of Commons) to ensure they have the most votes on standing committees. This is common practice for majority governments.
When the Liberals won a minority government in the previous election, the Members of Parliament (MPs) agreed to form committees with four Liberals, four Conservatives, and one Bloq Quebecois. Due to winning three byelections and having five opposition MPs cross the floor to join the Liberals, they now have 175 seats in the House of Commons, which means it has a majority government. MacKinnon has since proposed committees to consist of seven Liberals, four Conservatives, and one Bloc member. This proposed change will require a vote in the House of Commons.
What does this mean for the rental housing industry?
A Liberal majority would make it easier for the federal government to pass housing legislation. Taking majority positions on committees would also reduce the opposition’s ability to delay or amend those bills in detail. For the housing industry, that usually means faster movement on federal housing initiatives. However, it could also mean less committee-level pushback from builders, rental property owners, municipalities, and advocacy groups.
Having a Liberal majority in committees should mean:
• Faster legislation: House committees study bills clause by clause and can amend them. A Liberal majority on committees would enable the government to move housing bills through more quickly.
• More policy continuity: The Liberal housing agenda includes Build Canada Homes, more financing and grants for affordable housing, cuts to development charges, and measures to speed approvals. Committees could pass additional legislation to support these initiatives.
• Greater pressure to build: Proposals would likely increase incentives for new supply, especially purpose-built rental, modular, and affordable housing projects.
• Less room for opposition amendments: With Liberal control over committees, Conservatives and Bloc MPs would have fewer chances to stall or reshape bills. This could make policy more stable but less negotiated.
Members of the rental housing industry, including builders and developers, could benefit from clearer federal direction, more financing support, and faster approval pathways based on the directives in the Liberals’ current housing platform. That could help project pipelines and reduce some uncertainty around federal programs, especially for non-market and higher-density housing. However, if the Liberals use committee control to advance their rules more quickly, industry groups would have fewer opportunities to slow down potentially costly or time-consuming measures.
The provinces and municipalities are still heavily involved in implementing housing development, especially zoning, permits, and development charges. A Liberal federal majority will not fix supply
NATIONAL OUTLOOK
shortages. Strong federal bills require Senate approval and the involvement of other levels of government to implement policies. There is likely to be greater speed and certainty at the federal level, but it will not have an immediate impact on home prices or supply.
From the perspective of the rental housing industry, having a majority on committees is generally positive with respect to activity, supply, and speed. However, this means there will be fewer checks on the government’s housing agenda. Projects aligned with federal priorities will be fast tracked, while groups that rely on committee scrutiny to slow or reshape bills will have less power to do so.
Where renter demand is shifting in Canada & what operators should do about it
By Peter Altobelli, VP and General Manager, Yardi Canada Ltd.
How are renter search patterns shifting geographically, and what does that signal to operators? In a market where conditions are easing but still active, online search behaviour can help answer that question. It should not replace core operating metrics, but it adds valuable real-time context. In Q1 2026, Canada’s average in-place rent reached $1,761, vacancy rose to 5.1% and annual turnover climbed to 25.8%, pointing to a more balanced environment than a year earlier, according to Yardi’s Q4 2025 Canadian National Multifamily Report. Against that backdrop, renter-interest data helps show where demand is strengthening, where urgency is fading and where operators may need to adapt faster.
Mid-sized markets are rising
The strongest gains came from mid-sized and secondary markets. Based on renter activity on apartments listed on RentCafe.com in the previous quarter (Q4 2025), Moncton held the #1 national position, Hamilton jumped 10 spots to #2, Halifax ranked #3 and Saskatoon climbed to #4, according to the Q4 2025 Canada Renter Interest Report. The ranking is based on listing activity such as how many available apartments renters could browse, how often listings were viewed, how many listings were favourited and how many apartment searches were saved. Together, those actions help show where renters are actively exploring options and where interest is building.
The market-level details make that shift even clearer. In Moncton, listing views rose 34% year over year while available listings fell 33% year over year, suggesting renters were looking closely at fewer options and making decisions faster. Hamilton posted the quarter’s biggest jump, climbing 10 spots to #2, while favourited listings increased by more than 200% year over year and saved searches rose 72% year over year. That points to stronger intent from renters who wanted to keep track of listings and monitor the market. Saskatoon also stood out, with favourited listings up 46% year over year, another sign that renters were actively identifying properties they may want to return to or act on. For operators, these cities are not just interesting outliers. They are early signs of where online apartment demand may be strengthening ahead of other market indicators.
Large markets are cooling or rebalancing
Some of the country’s larger markets showed a different pattern. Vancouver climbed to #7 nationally, but Calgary dropped to #15 and Montréal fell to #24 as renter activity softened, according to the Q4 2025 Canada Renter Interest Report. That does not mean large markets are losing relevance. It more likely points to a market reset. In several major centres, renters may be facing more choice, taking more time to compare options or feeling less pressure to act immediately.
That lines up with broader multifamily trends. Higher vacancy, slower rent growth and rising turnover all point to a more balanced market, according to Yardi’s Q1 2026 Canadian National Multifamily Report. For operators, online renter activity should be viewed alongside core operating metrics such as rents, vacancy and mobility. Together, those indicators can help show whether demand is accelerating, stabilizing or becoming more selective.
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What this means for operators
Renter-interest data has practical value. It can help inform market expansion, pricing and incentives, leasing coverage and marketing allocation. It can also help operators understand where visibility matters most. When renters are comparing more options online, communities need to be easy to find across listing sites, property websites and corporate websites. In a more competitive environment, digital visibility is not optional. It is a core part of capturing demand.
See how housing providers are improving visibility, responding faster to renter demand and supporting leasing performance at www.yardi.com.
Average asking rents fall to nearly three-year low
According to the Rentals.ca April 2026 Rent Report, average asking rent in Canada fell to a 35-month low in March. The average asking rent currently sits at $2,006, which is a 5.3 per cent ($112) decline, the largest amount in almost five years. This represents 18 consecutive months of falling rents. Average asking rents have fallen by 1.1 per cent from February and by 2.5 per cent since the start of 2026. Vancouver, Ottawa, and Montreal had modest month-over-month increases, although rents remained down year-over-year.
Purpose-built rents were the most stable on an annual basis, declining 3.9 per cent ($2,005), but experienced the largest decrease on a month-over-month basis, with a 1.2 decrease from February. Average rents for all unit types have fallen 5.4 per cent in Ontario, 5.1 per cent in British Columbia, 4.4 per cent in Alberta, and 2.1 per cent in Quebec. Nova Scotia (3.3%), Saskatchewan (2.7%), and Manitoba (2.1%) all had increases.
Average rent per square foot decreased to $2.49, compared to $2.52 in March 2025, and is down from $2.66 year over year. The average unit size for available listings decreased to 831 square feet, down from 855 square feet in March 2025 and 867 square feet year over year.
To read the full report, visit https://rentals.ca/national-rent-report#national-overview.
Federal government approves eight rental housing projects in Ottawa
On April 23, the federal government announced it had approved eight rental projects under the Build Canada Homes program, which will add more than 1,100 units to the City of Ottawa. The announcement is part of a $400 million federal-municipal partnership that expects to add up to 3,000 mixed-income homes on public land through the City of Ottawa’s affordable housing pipeline. Gregor Robertson, Minister of Housing and Infrastructure, stated the Ottawa project should serve as a template for other cities.
The following sites are scheduled to begin construction between 2026 and 2027:
• 200–201 Beausoleil Drive – 159 units (non-profit)
• Geyser Place (formerly 3380 Jockvale Road) – 118 units (non-profit)
• 1770 Heatherington Road (Phase 1) – 90 units (non-profit)
• 58 Capilano Drive – 20 units (non-profit)
• 240 Presland Road – 64 units (non-profit)
• 100 block of Hickory Street – 110 units (non-profit)
• 2475 Regina Street (Parkway House) – 266 units (private and non-profit)
• 384 Arlington Avenue (Korean Church) – 296 units (private and non-profit)
According to CMHC, Ottawa housing starts are up about 7 per cent in the first quarter of 2026 compared to the previous year, with rental apartments driving most of the growth. However, CMHC and industry analysts stated that 2025’s national lift in starts, which includes a 12 per cent increase in Ottawa–Gatineau, reflects a weak base in construction starts.
While rental building has reached record levels, these statistics mask significant construction declines
SHAPING THE FUTURE OF RENTAL HOUSING TOGETHER
Rental Housing Canada (formerly CFAA) is the leading national association representing Canada’s rental housing sector, directly serving owners, managers and builders of nearly one million residential rental suites nationwide.
As the most comprehensive voice for rental housing providers, RHC has a proven track record of advancing practical solutions through decades of dedicated advocacy, strategic government relations, and active industry engagement with federal policymakers.
Our strength is rooted in collaboration and deep industry expertise. Members benefit from expert consulting, influential policy advocacy, valuable networking opportunities, and strategic partnerships all aimed at addressing Canada’s housing and affordability challenges by supporting the growth and sustainability of the rental housing sector.
Rental Housing Canada brings together the entire rental housing sector - owners, managers, investors, builders, and suppliers to advocate with one strong, united voice. Join RHC and be part of a national network driving smart policies and accelerating the development of much-needed rental housing across Canada. Your Membership Powers Our Advocacy
OWNERS/MANAGERS: Annual dues are $250 plus $0.50 per rental unit you own or manage, an investment in protecting your business and shaping the future of rental housing in Canada.
SUPPLIERS COUNCIL: Industry Suppliers are an important part of the rental housing industry as we work together to bring more housing to Canadians Corporate membership is $2500 per year or $1250 for Associate
in Toronto and Vancouver, underscoring the gap between current output and the volume needed to restore affordability. The Ottawa project addresses the gaps by focusing on building rental supply on public land, removing local fees, and aiming for faster delivery of developed properties.
Ottawa mayor Mark Sutcliffe said the City’s decision to waive development and planning charges on Build Canada Homes projects, in addition to its Housing Action Plan, demonstrates that it is doing its part to address the affordable housing crisis for Ottawa residents.
RHC Conference coming to Ottawa this month
The RHC Conference takes place on May 26–28, 2026 at the Rogers Centre in Ottawa. It brings together Canada’s rental housing community to share ideas, tackle challenges, and move the sector forward.
Our Building Momentum conference is all about turning vision into action. From accelerating development to leveraging smarter technology, the program spotlights practical solutions to deliver the homes Canadians need, today and into the future. Over two dynamic days, owners, developers, operators, and partners will exchange real-world strategies, build meaningful connections, and leave inspired to keep pushing the industry forward.
The 2026 Co-Chairs are Michelle Calloway, Senior Vice President, Operations, Minto Group and Christian Szpilfogel, Chief Investment Officer, Aliferous Group.
8:00 am Breakfast 9:00 am – 2:15 pm Educational Sessions
Sign-up for RHC’s National Outlook e-newsletter to receive up-to-date news on what is happening across Canada, as well as industry insights and insider information on RHC happenings. Email admin@rentalhousingcanada.ca to start receiving RHC’s e-Newsletter today! WANT TO STAY UP TO DATE WITH NATIONAL OUTLOOK?
