Yardi Q2 Stats: Early Signs of Stabilization; Halifax Remains Best Positioned

Research evidence excerpt

Yardi Q2 Stats: Early Signs of Stabilization; Halifax Remains Best Positioned

TD SECURITIES INC. - CANADA QUICK TAKE: INDUSTRY UPDATE

July 21, 2026

■Real Estate Yardi Q2 Stats: Early Signs of Stabilization;

Halifax Remains Best Positioned

Jonathan Kelcher, CFA^ THE TD COWEN INSIGHT

416 307 9931

Yardi’s Q3 Canadian multi-residential report (Q2 data) showed early signs of stabilization,

jonathan.kelcher@tdsecurities.com

supporting our “U”-shaped recovery view. National vacancy fell for the first time in nine

Golden Nguyen-Halfyard^ quarters to 4.7% (-40 bps q/q), while in-place rent growth slowed to 2.2% (-50bps q/q) with

416 308 3842 new leases negative for a second straight quarter (-0.6%). We believe current valuations more

golden.nguyenhalfyard@tdsecurities.com

than reflect soft fundamentals.

Linda Wang^

416 983 9259 Impact: SLIGHTLY POSITIVE

linda.wang@tdsecurities.com

Yardi’s Q2 Canadian multi-residential data point to still-soft rent fundamentals, though

vacancy showed early signs of stabilization. New lease rents declined for a second

consecutive quarter at -0.6% y/y, improving modestly from -1.0% in Q1, with weakness broad-

based and most pronounced in Kitchener-Cambridge-Waterloo (-4.5%), Toronto (-2.8%) and

Calgary (-2.2%). Renewals also moderated to +2.4% from +2.7%, while national renewal rent

growth slowed to +2.2%, the weakest since Q4/21. We continue to view an inflection in turnover

rents as the key positive catalyst for apartment REIT valuations.

Halifax remains the standout market, with the strongest renewal rent growth (+5.7%), positive

new lease growth (+2.5%) and the lowest vacancy rate (2.4%). We expect continued relative

outperformance, supported by domestic migration and rising defense-related spending, with