by Blue Vesta 
Whether you’re a property owner looking to maximize your investment or a tenant searching for the right home, understanding the rental market is essential. At Blue Vesta, we specialize in both London and Sault Ste. Marie — two very different but equally important markets. Here’s what you need to know for 2026.
London Ontario: Growth Meets New Supply
London has been one of Ontario’s fastest-growing rental markets, fueled by families, professionals, and students at Western University and Fanshawe College.
- Vacancy Rate: 2.9% (Oct 2024) — higher than recent years due to record new rental completions and softer international student demand.
- Condo Rentals: Extremely tight at just 0.2% vacancy.
- Average Rent: $1,548 for a 2-bedroom (+6.2% year over year). Across all units, the average is $1,460 (+6.4%).
- Housing Mix: About 55% of homes in the London area are single-detached, with growing condo and apartment developments.
- New Developments:
- Village SoHo (Vision SoHo Alliance): 690+ mixed-income rentals in progress, including Zerin Place (119 units).
- CMHC Funding: Recently backed over 200 new affordable units across multiple projects.
- City Goals: 47,000 new homes by 2031, including 3,000 affordable by 2026.
What this means for owners: Strong rental demand remains, but competition is rising as new supply comes online. Well-maintained, competitively priced homes are leased quickly.
What this means for tenants: Rentals go fast — especially single-family homes and condos. A strong application and quick response are key to securing the right property.
Sault Ste. Marie: Stability and Affordability
Sault Ste. Marie offers a more stable and affordable market compared to larger Ontario cities.
- Vacancy Rate: 2.4% (Oct 2024) — steady and healthy.
- Average Rent: $1,214 (median $1,150).
- Housing Mix: 66.8% of homes are single-detached, so many rentals are family homes, basement suites, or smaller multi-family properties.
- New Developments & Programs:
- Rapid Housing Initiative: 38 new homes in 2024, plus another 14 units approved in 2026.
- Housing Incentives: The City’s Housing Community Improvement Plan and Housing Grant Program support secondary suites, multi-units, and affordable builds.
- City Goals: 1,500 new homes by 2031.
What this means for owners: Sault offers reliable rental income with less competition and a focus on long-term tenants. Incentive programs make it an attractive city for investors.
What this means for tenants: Housing remains more affordable than in London, but demand for clean, well-kept homes is still strong. Applying early is recommended.
Final Thoughts
The 2026 rental landscape in London and Sault Ste. Marie shows two different stories: London is growing rapidly with new supply balancing demand, while Sault offers stability and affordability.
At Blue Vesta, we help owners and tenants navigate both markets — ensuring properties are well cared for and tenants feel at home.
Looking to rent or list a property in London or Sault Ste. Marie? [Contact Blue Vesta today] and let our team guide you through the 2026 market.
