Rental incentives on the rise in GTA and Hamilton

With vacancy rates continuing to rise across Canada, move-in incentives are becoming increasingly common for renters searching for housing and property managers competing to attract tenants.

The use of incentives has become especially widespread among newly completed purpose-built rental projects in the Greater Toronto and Hamilton Area (GTHA), where a surge in supply and growing competition from condo rentals has created more challenging lease-up conditions.

In the first quarter of 2026, two-thirds of newly completed purpose-built rental projects in the GTHA offered incentives, up from 62 per cent a year earlier and triple the numbers from 2024.

The most common incentive, according to analysis from Rentals.ca and Urbanation, was two months of free rent, representing nearly half of projects. Other common incentives included cash move-in bonuses, free parking or storage lockers and internet packages. For the average unit, incentives reduced effective rents by 13 per cent, or approximately $379 per month, up from average discounts of $292 in 2025 and $163 in 2024.

Approximately one in five rental listings on Rentals.ca now offers some form of incentive, including free rent, reduced parking fees, internet packages, gift cards, and cash bonuses.

Rental incentives have become far more common as supply increases and vacancy rates rise across many major markets,” said Urbanation President Shaun Hildebrand. “For renters, these promotions can represent meaningful savings and improved affordability, while for property managers, incentives are increasingly being used as a competitive tool to attract tenants and complete lease-ups in a softer market environment.”