The national vacancy rate dropped 40 basis points, signaling a cooling trend after nine consecutive quarters of growth. Despite this tightening, current vacancy remains 60 basis points higher than this time last year, largely due to the sustained influx of purpose-built rental supply. Regional disparities persist; Halifax and Winnipeg lead the country with the tightest markets at 2.4% and 2.8% respectively, while Calgary and Edmonton continue to report the highest vacancy levels at 6.8% and 5.8%.

Average national rents saw a marginal increase of $6 to $1,774, marking the slowest quarterly gain since 2021. Annual in-place rent growth has decelerated to 2.2%, driven almost exclusively by lease renewals rather than new market pricing. This shift is mirrored in tenant behavior, with the average length of stay reaching 38 months. Peter Altobelli, president of Yardi Canada Ltd., noted that demand has successfully absorbed recent deliveries, though the development pipeline is expected to taper off. Operators are now pivoting toward data-driven strategies to manage retention and time lease-ups in this evolving landscape.