What’s Changing in the Rental Market?

There are a few important developments in the rental market right now that both landlords and buyers should be aware of.

Asking Rents Continue to Ease

The average asking rent in Canada fell to $2,035 in August 2026, down 4.8% compared with a year earlier. That marked the 23rd consecutive month of year-over-year declines.

The national figures do not mean every neighbourhood or property type is behaving the same way, but they do show that renters generally have more choice than they did during the tightest part of the rental market.

For landlords, that may mean paying closer attention to pricing, presentation and how a rental compares with competing properties. For renters, it may create more opportunity to compare options rather than feeling pressure to act immediately.

B.C.’s 2027 Rent Increase Limit Is 2.2%

The Province of British Columbia has set the maximum allowable annual rent increase at 2.2% for 2027, down slightly from 2.3% in 2026. The Province says this is the seventh consecutive year the allowable increase has been set at or below inflation.

Landlords who choose to increase rent must still follow the requirements of the Residential Tenancy Act, including using the proper notice and providing the required notice period.

Buying a Home With a Tenant in Place?

This is an area where buyers need to be especially careful.

A tenancy does not automatically end when a property is sold.

If a buyer intends to occupy the property themselves, the process has to be handled correctly. For purchaser occupancy, B.C. requires the landlord to generate the appropriate notice through the Residential Tenancy Branch web portal and provide the tenant with at least three months’ notice.

That timing can become very important when an offer includes vacant possession.

A buyer may assume that possession day and move-in day will be the same, but if the tenancy notice has not been served correctly — or the dates do not line up — that assumption can create complications.

For that reason, when we are helping someone purchase a tenanted property, we pay close attention to the tenancy, proposed possession date and the wording of the contract well before subjects are removed.

What Does This Mean for Buyers and Landlords?

For landlords, softer asking rents mean it is increasingly important to understand what comparable rental properties are actually asking — and what tenants are choosing.

For buyers, particularly those purchasing a property they plan to occupy, the existence of a tenant should be considered early in the process, not after the offer has been accepted.

The rules around tenancies can affect timing, possession and even whether a particular property is practical for your plans.

If you are buying, selling or considering a rental property, getting advice early can help avoid surprises later.