A new report is challenging one of the biggest assumptions about Canada’s housing market.
Despite record-high rents in many cities, a growing number of landlords say they’re not making money – and some are losing it.
What the Data Shows
According to a 2026 rental market report from liv.rent:
- 38% of landlords say they are losing money
- Only 34% report making a profit
- The remaining landlords say they are breaking even
This suggests that the majority of landlords in Canada are not profiting from their rental properties.
Why Landlords Are Struggling
Even with high rental prices, several factors are putting pressure on landlords:
- Rising mortgage costs from higher interest rates
- Increased property taxes and insurance
- Maintenance and repair costs
- Vacancy risks in softer markets
For many investors – especially those who bought at peak prices – rental income is no longer covering expenses.
A Major Disconnect in the Market
At the same time, renters still largely believe landlords are benefiting from the current market.
This has created a growing disconnect:
- Renters see high rents and assume profits
- Landlords are experiencing tight margins or losses
The reality appears to be more complex than many expect.
What This Signals for Ontario
For Ontario’s housing market, this trend could have ripple effects:
- Some landlords may choose to sell their properties
- Fewer investors could enter the market
- Rental supply could tighten further over time
This could put additional pressure on rents – even if landlords themselves are struggling.
The Bigger Picture
Canada’s housing market is facing pressure on multiple fronts:
- Buyers dealing with affordability challenges
- Renters facing high costs
- Landlords seeing shrinking returns
Instead of one group benefiting, the data suggests stress across the entire system.
What This Signals for the Market
The idea that landlords are consistently profiting may no longer reflect today’s reality.
If current conditions continue:
- Rental investment may become less attractive
- Supply growth could slow
- Housing affordability challenges may persist
References
liv.rent. (2026). 2026 Rental Market Trend Report. Retrieved from https://liv.rent
Canada Housing Market 
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