Free parking, free wifi and signing bonuses are just some of the perks apartment building owners are offering prospective tenants as competition in the rental market intensifies.

According to a new report from real estate research firm Urbanation, 66 per cent of rental projects in the Greater Toronto Hamilton Area (GTHA) offered incentives to attract tenants in the first quarter of 2026 — up from 62 per cent a year ago and double the amount offered two years ago.

Urbanation said the use of incentives has become widespread in the GTHA, with institutional, purpose-built operators such as CAPREIT and Minto Apartments offering months of free rent, free parking and “special offers” like free WiFi and $500 signing bonuses.

The firm found that the most common incentive in the first quarter of the year was two months of free rent, offered by 47 per cent of rental projects, up from 32 per cent in the same period last year. At the same time, the number of projects offering one rent-free month dropped to 42 per cent from 53 per cent last year.

Other variations of the free rent theme became popular in the first quarter, with offers of a free month-and-a-half and a free three months increasing from two per cent to six per cent and one per cent to four per cent, respectively.

A break on rent wasn’t the only incentive that became more common last year. Cash move-in bonuses also topped the list of perks, jumping from 10 per cent to 17 per cent year over year in Q1.

Rising inventory and weakened demand in both the resale and new condo market have redirected investors and institutional buyers to the rental market. Canada Mortgage and Housing Corporation has also noted a rise in projects pivoting from ownership to rental over the last year.

Purpose-built rentals are facing unprecedented competition, said Shaun Hildebrand, president of Urbanation.

“Rental operators are grappling with a deluge of supply at the moment, due to intense competition from the condo market and a surge in tenants moving to get a better deal,” he said.

Vacancy rates in buildings that have passed the lease-up phase and are now operating normally increased by 5.4 per cent in the first quarter of 2026, up from 3.6 per cent a year earlier.

Urbanation reported that this occurred as population inflow slowed and tenant turnover added to the supply of available units. The availability rate, which includes vacant units and units that have an imminent vacancy on the books, reached a record 8.0 per cent.

The impact of rising vacancies and more units coming to market is beginning to show up in pricing. Urbanation found that, when accounting for the monetary value of incentives offered in the market, net rents in the first quarter declined by 3.8 per cent annually to a 16-quarter low of $3.52 per square foot. The incentives reduced rents by an average of 13 per cent or $379.

“This brought purpose-built rents in line with condo rents averaging $2,543 in Q1,” Urbanation said in its report.

While it appears that rental completions slowed to the tune of 61 per cent year over year in the first quarter, Urbanation reported that the eight-quarter low of 915 units negates several projects that pushed occupancy timelines to later quarters. More than 3,200 units across 17 projects are expected to come online in the second quarter alone, and nearly 9,000 units are expected over the next year.

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Developers are continuing to advance new rental projects in early 2026, with 3,674 units (up 12 per cent) breaking ground in the first quarter, bringing the latest 12-month total for starts to a multi-decade high of 10,388 units.

“Supply pressures will persist this year as apartment completions run high and population growth slows, creating a window of opportunity for renters to capitalize on improved affordability,” Hildebrand said.

• Email: shcampbell@postmedia.com

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Ed Sheeran performs at Sydney’s Accor Stadium. Picture: Brett Costello

Live entertainment and annual events like Valentine’s Day are driving the travel plans of millions of Australians in spite of the high costs of daily life.

British superstar Ed Sheeran’s performance at Accor Stadium delivered a significant boost to hotel demand across Sydney last weekend, particularly near Sydney Olympic Park.

Accor’s Sydney Olympic Park hotels, including its Novotel, Ibis and Pullman brands, reached capacity over the weekend; year-on-year occupancy was up 16 per cent last Friday, 10 per cent on Saturday and 15 per cent on Sunday. Accor said major concerts drove multi-night stays.

An artist’s impression of the Holiday Inn Express, Cockburn, in Perth which is part of a complex built by a Malaysian developer.

Closer to the Sydney CBD, the French hotelier said events such as Valentine’s Day helped Accor’s Sydney CBD hotels reach 98 per cent occupancy, which was up 5 per cent on the same time last year.

Major events increasingly divert tourism into Sydney, Accor Pacific chief operating officer Adrian Williams said.

“Concerts of this scale generate a tangible uplift in hotel demand, particularly in event precincts like Sydney Olympic Park. We’re seeing how live entertainment, combined with key moments such as Valentine’s Day, can influence travel decisions and extended stays,” he said.

“Events like these energise our cities and reinforce the continued strength of experience-led travel.”

Meanwhile, developer Deicorp has announced a 104-room hotel for its Hyde Metropolitan residential tower near Sydney’s Hyde Park. The property, on the lower levels of the tower, will be managed by Marriott International as an AC by Marriott brand, together with independent hotel management company Trilogy Hotels.

Marriott operates more than 250 AC Marriott hotels worldwide and has another 180 in the pipeline.

In Perth, global hotel operator IHG is accelerating its expansion by signing a management agreement to run a $135m hotel development in Perth’s southern corridor. It will run the Holiday Inn Express Cockburn, in partnership with SKS Group, which develops across Australia and Malaysia. Holiday Inn Express is one of IHG’s fastest growing brands with more than 3275 hotels open and a further 664 planned around the world, including 11 Holiday Inn Express properties in Australasia and the Pacific.

An artist’s impression of the InterContinental Port Moresby which is being developed by Gulf Province Properties.

Opening later this year, the 170-room Cockburn property is part of a new mixed-use development presently under construction, featuring a purpose-built hotel tower and a residential tower.

IHG believes that the Perth suburb, 26km from the CBD, has strong fundamentals to support long-term demand.

The property will be positioned close to economic drivers such as the Australian Marine Complex, a major defence, shipbuilding and industrial hub, and the Murdoch Medical Precinct.

IHG Hotels & Resorts managing director Australasia and Pacific Matt Tripolone said IHG was focused on expanding its portfolio of globally recognised brands.

“This signing underscores the strong appeal of Holiday Inn Express to owners seeking a proven, efficient operating model that delivers impressive returns while meeting the evolving needs of today’s travellers,” he said.

Offshore, IHG has just signed up to run the InterContinental Port Moresby in Papua New Guinea, partnering with Gulf Province Properties for the new 179-room luxury hotel scheduled to open in late 2028. The InterContinental will be developed within a mixed-use precinct in the heart of the capital’s diplomatic and government district.

It will be the first internationally branded luxury hotel of its scale in PNG.

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